In our September issue, we asked if it was
An overview of the most common positions is
Accountants reply: Is it too hard to become a CPA?
September 28, 2021 11:02 AM
Amy Hardman, CPA
I read your article, “Is it too hard to become a CPA?” Very interesting and not surprising. We have many staff accountants at our firm studying and taking exams. One thing that could help is extending the 18-month “pass all your exams” clock. We had a staff member who had tests they actually passed drop off. That was so painful and she actually left public accounting. It is far too difficult to work as a full-time accountant and study for exams and pass them all in 18 months. Plus there is no time to study during tax season. If only they could extend it to four years or something, that would help.
Brian Streig, CPA
I read your article this morning and shared it on Twitter. I don’t think anything I’ve ever posted has had such a reaction or so many comments .
I think a lot of important issues have been coming up in the discussions I’ve been having on Twitter.
The extra year can be a cost barrier since many people do it as part of a master’s program. Even at undergraduate tuition rates, it’s a year longer that’s keeping you from getting out into the world and earning a living, so you have to rely on parents or student aid.
The testing process really needs to be updated. The two-year limit has become unrealistic for working people trying to pass the exam. Yes, people are still passing, but many are giving up on the exam before they pass all four parts, especially if prior exam is too old to count any more. Maybe a four-year window would make it more attainable and not “hurt” the value of the credential.
The CPA exam itself is not that applicable to real-world accounting work. No one comes out of the exam and is ready to prepare a tax return or be of any use on an audit without an extreme amount of oversight and additional training. Shouldn’t the exam test for skills that will make you much more useful to the profession at large?
If you read the comments on my post above, there are a lot of offshoots that discuss problems in the accounting profession at large, like the hours worked, an inherent sexism and racism element, and just the value of the credential in a modern economy.
I think a lot of important issues have been coming up in the discussions I’ve been having on Twitter.
The extra year can be a cost barrier since many people do it as part of a master’s program. Even at undergraduate tuition rates, it’s a year longer that’s keeping you from getting out into the world and earning a living, so you have to rely on parents or student aid.
The testing process really needs to be updated. The two-year limit has become unrealistic for working people trying to pass the exam. Yes, people are still passing, but many are giving up on the exam before they pass all four parts, especially if prior exam is too old to count any more. Maybe a four-year window would make it more attainable and not “hurt” the value of the credential.
The CPA exam itself is not that applicable to real-world accounting work. No one comes out of the exam and is ready to prepare a tax return or be of any use on an audit without an extreme amount of oversight and additional training. Shouldn’t the exam test for skills that will make you much more useful to the profession at large?
If you read the comments on my post above, there are a lot of offshoots that discuss problems in the accounting profession at large, like the hours worked, an inherent sexism and racism element, and just the value of the credential in a modern economy.
An anonymous CPA
The answer is no. The profession has a marketing problem, not a difficulty/education problem.
To become a lawyer requires seven years, two more than a CPA. Clearly, the law profession has no problem attracting young professionals. Accountants and the profession have perhaps the worst marketing skills of any industry. Even the trucking industry has better PR.
To go one step further, we are actually our own worst enemies. Have you ever met a CPA that didn’t complain about the hours? Until we fix that basic problem, we will continue to have staffing shortages. And of course the first step is admitting we have a problem — something the current leadership of the American Institute of CPAs denies.
Last point — do we really want to be the first profession to lower standards by going back to 120 hours?
To become a lawyer requires seven years, two more than a CPA. Clearly, the law profession has no problem attracting young professionals. Accountants and the profession have perhaps the worst marketing skills of any industry. Even the trucking industry has better PR.
To go one step further, we are actually our own worst enemies. Have you ever met a CPA that didn’t complain about the hours? Until we fix that basic problem, we will continue to have staffing shortages. And of course the first step is admitting we have a problem — something the current leadership of the American Institute of CPAs denies.
Last point — do we really want to be the first profession to lower standards by going back to 120 hours?
Ben Clark, CPA
I brought up the EY program [which is aiming to help young staff fulfill the 150-credit hour requirement] with our firm even if just to generate a conversation. Finding staff and especially experienced people right now is incredibly difficult.
I don’t think we should sacrifice the quality of the license as far as what is required to be known to be a CPA. But the process, especially the fifth-year requirement, should be looked at. It would be better to be able to count work experience or something. I find a lot of our staff get more out of on-the-job training than that fifth year. Also, the push by schools for expensive master’s degrees is also a lot of pressure on candidates, as it is more financial burden they have to take on.
I don’t think we should sacrifice the quality of the license as far as what is required to be known to be a CPA. But the process, especially the fifth-year requirement, should be looked at. It would be better to be able to count work experience or something. I find a lot of our staff get more out of on-the-job training than that fifth year. Also, the push by schools for expensive master’s degrees is also a lot of pressure on candidates, as it is more financial burden they have to take on.
Eileen L. Schneider, CPA
I do not think making it easier to become a CPA is an answer. Where does it leave us if we “dummy down” the profession? Sorry, but I took the CPA exam back in the day when you took all four parts at the same time without a calculator. I took a Saturday review course while finishing my senior year. I studied for months and passed all four parts the first time. It was not easy but we did it! And I also took extra accounting courses each semester in order to have the knowledge to pass. This was before the 150-hour rule but I knew I needed those courses that were not required to graduate but were needed to pass the exam. Making it easier helps no one — not the students and not our clients.
I hope the profession does not go down this path. How sad if it does for all of us.
I hope the profession does not go down this path. How sad if it does for all of us.
Harry Steindler, CPA
I believe the profession made major mistakes when the nature and timing of the exam was changed and when we moved to the 150-hour requirement.
I feel there is minimal benefit to the 150 hours. The work that a new accountant does once reaching the professional world is so far different from what is taught in school and requiring an additional 30 credit hours does little to bridge that gap. Additionally, although entry-level comp for accountants has recently seen a significant increase, starting pay in accounting generally pales in comparison with other professional models that require advanced degrees, so accounting suffers. So many young people are even questioning the value of a four-year post-secondary education — they are looking at the world and realizing their intelligence and creativity can help them build careers in so many different ways — expecting them to spend money and time on a fifth year to receive an OK salary, working crazy hours, with a daunting process surrounding a difficult exam doesn’t make sense.
The current structure of the exam — taking individual sections at a time, at various times during the year (for most students after they have started their careers) is too hard for many (or most) new accountants to schedule and manage. There’s too much planning involved, too much balance involved for young people just starting in their careers. The old model — May/November — made perfect sense. Everyone knew when they would be taking the exam, everyone knew when to take an exam prep course to be ready for the exam. Most higher-level university accounting programs built the students’ last year (certainly last semester) around passing the exam. The structure that created was so beneficial — the AICPA needlessly destroyed that structure and we’ve been paying for it ever since.
I’m fine with the exam itself being challenging, but the profession needs to reverse the damage done by the AICPA, and help students manage this process, rather than creating the meaningless hurdles it created when the above changes were created.
I feel there is minimal benefit to the 150 hours. The work that a new accountant does once reaching the professional world is so far different from what is taught in school and requiring an additional 30 credit hours does little to bridge that gap. Additionally, although entry-level comp for accountants has recently seen a significant increase, starting pay in accounting generally pales in comparison with other professional models that require advanced degrees, so accounting suffers. So many young people are even questioning the value of a four-year post-secondary education — they are looking at the world and realizing their intelligence and creativity can help them build careers in so many different ways — expecting them to spend money and time on a fifth year to receive an OK salary, working crazy hours, with a daunting process surrounding a difficult exam doesn’t make sense.
The current structure of the exam — taking individual sections at a time, at various times during the year (for most students after they have started their careers) is too hard for many (or most) new accountants to schedule and manage. There’s too much planning involved, too much balance involved for young people just starting in their careers. The old model — May/November — made perfect sense. Everyone knew when they would be taking the exam, everyone knew when to take an exam prep course to be ready for the exam. Most higher-level university accounting programs built the students’ last year (certainly last semester) around passing the exam. The structure that created was so beneficial — the AICPA needlessly destroyed that structure and we’ve been paying for it ever since.
I’m fine with the exam itself being challenging, but the profession needs to reverse the damage done by the AICPA, and help students manage this process, rather than creating the meaningless hurdles it created when the above changes were created.
- No more 150 hour requirement.
- A structured exam process.
- And higher starting salaries would help!
Kate Wilder
I read your article about the CPA exam and wanted to chime in as someone who is half-way through my fifth year of accounting with over five years of industry experience.
At this point I'm not planning to sit for the CPA because:
1. Public accounting firms notoriously work their people to death, so I won't ever work for one.
2. The CPA requires knowledge in most areas of accounting, even though you'll likely only use one in your career (for example, my interest is in tax, but that's only one portion of the test).
3. Everything I truly know about accounting I've learned on the job, so spending the time studying and the money paying for study guides to pass a test that literally proves nothing isn't worth my effort.
It's a nice title to have and everywhere I've worked has incentivized becoming a CPA with large raises and bonuses, but ironically admit that those with the license don't necessarily produce better quality results than those without.
Maybe they could specialize the test? If I could get a specific CPA that would show I have special knowledge in my chosen industry I might consider it, but until then I'm not going to waste time "becoming an expert" in every accounting field, for a test that I will forget the answers to shortly after taking it. As we like to say at work, CPA stands for Couldn't Pass Again.
At this point I'm not planning to sit for the CPA because:
1. Public accounting firms notoriously work their people to death, so I won't ever work for one.
2. The CPA requires knowledge in most areas of accounting, even though you'll likely only use one in your career (for example, my interest is in tax, but that's only one portion of the test).
3. Everything I truly know about accounting I've learned on the job, so spending the time studying and the money paying for study guides to pass a test that literally proves nothing isn't worth my effort.
It's a nice title to have and everywhere I've worked has incentivized becoming a CPA with large raises and bonuses, but ironically admit that those with the license don't necessarily produce better quality results than those without.
Maybe they could specialize the test? If I could get a specific CPA that would show I have special knowledge in my chosen industry I might consider it, but until then I'm not going to waste time "becoming an expert" in every accounting field, for a test that I will forget the answers to shortly after taking it. As we like to say at work, CPA stands for Couldn't Pass Again.
Kay Dobbins, CPA
As a CPA in public practice who passed the test in one sitting almost 30 years ago, I can tell you without a doubt that having that certification has made a difference in my earning capacity. For those young accountants who know for sure they have no interest in doing tax returns or audits, then I think the extra classes and stress of the CPA exam are probably not worth it. I’m from a fairly small town in Texas though, so for me, it was public practice or being a glorified bookkeeper.
A CPA exam candidate
Here is my story and what I think should change: After graduating college with a business admin degree, I worked in a mailroom and other admin roles, I took two more years of accounting classes to satisfy the 150-unit requirement. Then work got too busy (finally got a staff accountant role) but a year later I studied for six months for about four to six hours a night after work. Near the end, I was getting 80% on my practice exams, but when it came to the FAR exam I ended up with a score of 38. I was pretty depressed about this for three months considering the amount of effort and sacrifice it took to fail.
What really got me on the FAR exam, and what I think needs to change, is what they actually test you on. It seemed that I studied a million things and then was repeatedly tested on two different topics, which is not representative of the profession or my knowledge. Another thing is that the simulation questions are too long. If you were to just read the question, it would take an hour to read which leaves no time to answer the question. This isn't a reading contest, it's an accounting exam.
What really got me on the FAR exam, and what I think needs to change, is what they actually test you on. It seemed that I studied a million things and then was repeatedly tested on two different topics, which is not representative of the profession or my knowledge. Another thing is that the simulation questions are too long. If you were to just read the question, it would take an hour to read which leaves no time to answer the question. This isn't a reading contest, it's an accounting exam.
K. Arnold, CPA
As someone who has been a CPA for less than two years, I feel I'm a bit biased when it comes to thinking about making the process easier. Future CPAs should have to suffer through the process like I did and like all those before me. :) All joking aside, I do think the whole process is beneficial. However, I can see where family commitments or the cost of study materials and the exam could be barriers for some.
In Tennessee, a CPA candidate has to have two years of experience to become a licensed CPA. I believe that the combination of actual experience along with studying the exam materials is important for any CPA. In fact, I believe that a person should have some experience before even being allowed to sit for the exam. I had worked in a public accounting firm for several years before I decided to sit for the exam, so I already had quite a bit of experience. However, I feel that I learned so much more by studying for and taking the exams. Having experience working in accounting allowed me to understand and absorb what I was studying, as opposed to a college classroom environment with no experience to associate with the knowledge. Knowledge is useless unless you know how to apply it. As I'm sure you are aware, there are plenty of CPAs out there who passed the exams but who don't have the skills or the know-how to do the job well.
I don't believe that the 150-hour requirement is necessary. From my experience, college itself doesn't prepare you for a job in public accounting, it just gives you some tools to help you float. Fresh out of college, you are thrown in the deep end and expected to sink or swim. I think college accounting classes should better prepare you for the actual work you might be doing.
The 18-month time limit from the time you pass the first exam to finish them is daunting. Having a family or working through tax season could make it seem impossible for some people. I was studying nearly any time I wasn't sleeping or working to make sure I covered as much of the material as I could in the limited time available. I don't believe I would have been able to accomplish that if I had to care for young children. Extending the time allowed to pass the exam would probably help those who feel like they don't have the time to study.
One barrier to the occupation is the long hours required, especially during tax season. Why would anyone want to work 50-plus hours a week when they could make the same amount at a 40-hour-a-week job?
In summary, I feel that the long work hours and the time required to study for the exam are two of the biggest barriers to becoming a CPA. The cost of the study materials and the exams is another. I don't believe that 150 credit hours is necessary, but I do believe that experience should be required.
In Tennessee, a CPA candidate has to have two years of experience to become a licensed CPA. I believe that the combination of actual experience along with studying the exam materials is important for any CPA. In fact, I believe that a person should have some experience before even being allowed to sit for the exam. I had worked in a public accounting firm for several years before I decided to sit for the exam, so I already had quite a bit of experience. However, I feel that I learned so much more by studying for and taking the exams. Having experience working in accounting allowed me to understand and absorb what I was studying, as opposed to a college classroom environment with no experience to associate with the knowledge. Knowledge is useless unless you know how to apply it. As I'm sure you are aware, there are plenty of CPAs out there who passed the exams but who don't have the skills or the know-how to do the job well.
I don't believe that the 150-hour requirement is necessary. From my experience, college itself doesn't prepare you for a job in public accounting, it just gives you some tools to help you float. Fresh out of college, you are thrown in the deep end and expected to sink or swim. I think college accounting classes should better prepare you for the actual work you might be doing.
The 18-month time limit from the time you pass the first exam to finish them is daunting. Having a family or working through tax season could make it seem impossible for some people. I was studying nearly any time I wasn't sleeping or working to make sure I covered as much of the material as I could in the limited time available. I don't believe I would have been able to accomplish that if I had to care for young children. Extending the time allowed to pass the exam would probably help those who feel like they don't have the time to study.
One barrier to the occupation is the long hours required, especially during tax season. Why would anyone want to work 50-plus hours a week when they could make the same amount at a 40-hour-a-week job?
In summary, I feel that the long work hours and the time required to study for the exam are two of the biggest barriers to becoming a CPA. The cost of the study materials and the exams is another. I don't believe that 150 credit hours is necessary, but I do believe that experience should be required.
Charleen Bell
I have not been able to get my CPA license although I passed the exam. I completed all the educational requirements and more, and have been on my job for 47 years now. At the time I applied for my license I was required to work indirectly under a licensed CPA for 12 months. I completed that requirement.
The CPA refused to sign off on me. I went up the chain of command requesting their assistance but no one wanted to cross this person. I filed all appeals with the State Board of Accountancy to no avail. I even hired a licensing attorney to represent me at the hearing.
Interesting to note I work for the State of California. Four levels of management above me showed up to bar me from getting my license.
Prior to the hearing I provided all my support within two binders: Correspondence and Audit Schedules. I FedExed these binders to the State Board of Accountancy, who claimed they never received them. I reproduced these binders once again and sent them a second time by FedEx.
The CPA told the State Board of Accountancy she never reviewed my work. I showed the board correspondence within my binders that proved she did.
There were many emails from the CPA to myself stating she had reviewed and incorporated my schedules. But because the CPA did not initial my audit schedules, the State Board of Accountancy denied me my general accounting license.
This was the end of my dream of becoming a CPA.
I have paid my dues annually to maintain my educational benefits and connection.
The CPA refused to sign off on me. I went up the chain of command requesting their assistance but no one wanted to cross this person. I filed all appeals with the State Board of Accountancy to no avail. I even hired a licensing attorney to represent me at the hearing.
Interesting to note I work for the State of California. Four levels of management above me showed up to bar me from getting my license.
Prior to the hearing I provided all my support within two binders: Correspondence and Audit Schedules. I FedExed these binders to the State Board of Accountancy, who claimed they never received them. I reproduced these binders once again and sent them a second time by FedEx.
The CPA told the State Board of Accountancy she never reviewed my work. I showed the board correspondence within my binders that proved she did.
There were many emails from the CPA to myself stating she had reviewed and incorporated my schedules. But because the CPA did not initial my audit schedules, the State Board of Accountancy denied me my general accounting license.
This was the end of my dream of becoming a CPA.
I have paid my dues annually to maintain my educational benefits and connection.
Luke Canady
My thoughts are that the testing should be allowed to be executed in an online format. I know pharmacists who can take required exams for licensing online from their own homes, there is simply no reason with today's technology that this can't be done for the CPA exam.
Personally, I took two parts of the exam when the city I lived in had testing available. However, now living in a location in Alaska where taking the exam will require four flights, four or more possible hotel stays in Anchorage, I have passed on attempting the exam here. In addition, the annual cost of CPE likely coming from my own pocket, has deterred me from seeking the license. I currently work as a CFO, and have had two prior CFO positions with other organizations. In these positions, the pay would remain the same if I had a CPA. Simply put, the CPA license would add costs and time to my life, without adding additional pay in my current position.
Personally, I took two parts of the exam when the city I lived in had testing available. However, now living in a location in Alaska where taking the exam will require four flights, four or more possible hotel stays in Anchorage, I have passed on attempting the exam here. In addition, the annual cost of CPE likely coming from my own pocket, has deterred me from seeking the license. I currently work as a CFO, and have had two prior CFO positions with other organizations. In these positions, the pay would remain the same if I had a CPA. Simply put, the CPA license would add costs and time to my life, without adding additional pay in my current position.
John Boyer
The test isn't hard, but trying to study while firms have you working 80-plus-hour weeks is difficult. The 18-month window also makes it challenging when busy season is really through October for tax, giving you two months when you can study and take sections of the exam. Even then planning only dropped me to 60-hour weeks with two hours of commute … .
Dalene “DD” Mariani, CPA
Our profession needs to continue pushing for integrity and that comes in the form of hard work, training and experience.
I can agree to forego an official fifth year of school in lieu of real-life experience. I was in the last group of CPAs not required to have that fifth year. I also had to work to put myself through college and found that the experience within a public accounting firm — albeit a small, local regional firm — was worth as much or more than the most of the accounting courses required for graduation even then. Most (of my) professors have no real-life experience in the accounting field. They are intelligent, no doubt, but go straight from student to the academia world. I would prefer to see a CPA candidate gain the additional training in the form of actual experience such as an internship, work study or entry-level position within (most) any accounting firm. Practicing CPAs should embrace the opportunity as well to help groom the future.
As a working college student, I was encountering the real struggle of how to handle an audit finding that potentially could change the career path of a pillar of our community. I also worked side by side with a CPA that at that time would have been considered a young professional with a decent amount of career experience that ultimately made some very bad decisions. Not only was he stripped of his license but also served time in prison. That in itself was a huge ethics lesson for me that no theoretical discussion could have ever shed the light on any better! Now, let’s hope that this type of instance is far less common, but you get the point. From the positive side of the experience, I was assigned the simple tasks of proofreading financials (yes, this was just as computers were coming into the profession!). Not for “did they make sense,” because how would I know, but for: Did the presentation look good? Were footnotes correctly labeled/numbered? Were words correctly spelled? Were columns lined up? Did the numbers total? I learned what hash totals meant and why they were useful. I also learned that accounting was also a customer service business. None of these were ever part of Accounting 101. As I progressed, the actual entering of a tax journal entry and knowing it’s affect to ensure the CPA preparing the next year’s return would be working with the correct beginning information was an assumption the Tax 101 professor must have thought was innate in every accounting student. I have many more examples of the value of that time versus my college training. I am grateful for both forms of training!
As for the CPA exam, yes, there should be strenuous testing! I consider CPAs in a group of professionals such as attorneys and doctors (even nurses). You must have a better-than-average understanding of the area of competency in which you are performing. Testing is meant to show who has the ability to perform ... under stress and/or difficult situations, ability to make decisions and provide proof if needed, show aptitude for the profession, etc.
Even with my feelings on your specific question(s) expressed above, I admit the accounting profession can welcome non-CPA professionals at various levels, but there must be an asterisk associated in those instances. I personally know a CFO that never had the desire to take the exam that far outperforms me financially. He has the experience, no doubt, but he is still subject to review by public accounting firm CPAs during audit that provide him insight and guidance on the technical side of things. Additionally, I employ a bookkeeper that is as competent as I am, but again, never had the desire to “go for it.” She realizes now that she could have had her own bookkeeping firm; now she has to rely on someone like me to sign off on reports. The asterisk for these two examples comes in the form that while their work is excellent, they are still subject to an overarching authority to assure their work is in compliance. The licensed CPA, as an attorney or doctor, continues training and learning and staying informed of industry standards. That is what sets us apart.
There is room for those that don’t want to make the sacrifice; however, we cannot give up the integrity of the profession because it is too hard. Pretty much the underlying sentiment on a lot of our society’s undoing these days! Personally, I chose to rise above because I wanted to be seen as an expert in my field. It wasn’t easy financially, and I sacrificed family time to make it happen. Why should we dismiss this for future generations? This isn’t a “participation trophy” field!
I can agree to forego an official fifth year of school in lieu of real-life experience. I was in the last group of CPAs not required to have that fifth year. I also had to work to put myself through college and found that the experience within a public accounting firm — albeit a small, local regional firm — was worth as much or more than the most of the accounting courses required for graduation even then. Most (of my) professors have no real-life experience in the accounting field. They are intelligent, no doubt, but go straight from student to the academia world. I would prefer to see a CPA candidate gain the additional training in the form of actual experience such as an internship, work study or entry-level position within (most) any accounting firm. Practicing CPAs should embrace the opportunity as well to help groom the future.
As a working college student, I was encountering the real struggle of how to handle an audit finding that potentially could change the career path of a pillar of our community. I also worked side by side with a CPA that at that time would have been considered a young professional with a decent amount of career experience that ultimately made some very bad decisions. Not only was he stripped of his license but also served time in prison. That in itself was a huge ethics lesson for me that no theoretical discussion could have ever shed the light on any better! Now, let’s hope that this type of instance is far less common, but you get the point. From the positive side of the experience, I was assigned the simple tasks of proofreading financials (yes, this was just as computers were coming into the profession!). Not for “did they make sense,” because how would I know, but for: Did the presentation look good? Were footnotes correctly labeled/numbered? Were words correctly spelled? Were columns lined up? Did the numbers total? I learned what hash totals meant and why they were useful. I also learned that accounting was also a customer service business. None of these were ever part of Accounting 101. As I progressed, the actual entering of a tax journal entry and knowing it’s affect to ensure the CPA preparing the next year’s return would be working with the correct beginning information was an assumption the Tax 101 professor must have thought was innate in every accounting student. I have many more examples of the value of that time versus my college training. I am grateful for both forms of training!
As for the CPA exam, yes, there should be strenuous testing! I consider CPAs in a group of professionals such as attorneys and doctors (even nurses). You must have a better-than-average understanding of the area of competency in which you are performing. Testing is meant to show who has the ability to perform ... under stress and/or difficult situations, ability to make decisions and provide proof if needed, show aptitude for the profession, etc.
Even with my feelings on your specific question(s) expressed above, I admit the accounting profession can welcome non-CPA professionals at various levels, but there must be an asterisk associated in those instances. I personally know a CFO that never had the desire to take the exam that far outperforms me financially. He has the experience, no doubt, but he is still subject to review by public accounting firm CPAs during audit that provide him insight and guidance on the technical side of things. Additionally, I employ a bookkeeper that is as competent as I am, but again, never had the desire to “go for it.” She realizes now that she could have had her own bookkeeping firm; now she has to rely on someone like me to sign off on reports. The asterisk for these two examples comes in the form that while their work is excellent, they are still subject to an overarching authority to assure their work is in compliance. The licensed CPA, as an attorney or doctor, continues training and learning and staying informed of industry standards. That is what sets us apart.
There is room for those that don’t want to make the sacrifice; however, we cannot give up the integrity of the profession because it is too hard. Pretty much the underlying sentiment on a lot of our society’s undoing these days! Personally, I chose to rise above because I wanted to be seen as an expert in my field. It wasn’t easy financially, and I sacrificed family time to make it happen. Why should we dismiss this for future generations? This isn’t a “participation trophy” field!
Emmanuel Tinashe Mudyiwa
Is it possible?
Definitely, through extended support in the form of intensive training and coaching that results in greater success in the exam. This involves advancing course materials as well as service providers taking further steps to ensure delivery of extensive and effective learning channels for the candidates.
Is it desirable?
Maybe no.
The CPA credential should not be seen as something easy to get.
However, from the point above on how to make it easier to attain, the learning process is likely to advance altogether.
The absolute effect would be greater difficulty.
Which is ultimately desirable. The CPA credential stands in its highest form. And should nevertheless stay that way.
Definitely, through extended support in the form of intensive training and coaching that results in greater success in the exam. This involves advancing course materials as well as service providers taking further steps to ensure delivery of extensive and effective learning channels for the candidates.
Is it desirable?
Maybe no.
The CPA credential should not be seen as something easy to get.
However, from the point above on how to make it easier to attain, the learning process is likely to advance altogether.
The absolute effect would be greater difficulty.
Which is ultimately desirable. The CPA credential stands in its highest form. And should nevertheless stay that way.
Sarah A. Adams, CPA, CGMA
Your article echoed a lot of my thoughts as well. As a CPA of over 30 years, nearing retirement, it concerns me that the pipeline of staffing is becoming narrower and narrower. And how is upper management going to look 20 years in the future if firms are flooded now with non-CPA staff?
I believe our professionalism and credibility is lifted by having a rigorous exam requiring us to prove our level of knowledge. When I took the exam, it was even more rigorous than it is today, so it has already been watered down. I believe the exam is important, just as attorneys are required to pass the bar exam and medical professionals are required to pass their boards. So I am in favor of keeping that in place. We would not want to leave our health in the hands of a health professional that was unable to pass their boards, likewise the public's confidence in a CPA is somewhat dependent on knowing that we too passed a rigorous exam.
However, I do believe the 150-hour requirement should be lifted. A four-year degree (or equivalent) should be sufficient for qualification to take the exam. That is not to say they would be fully prepared to pass the exam if there is material on the exam covered in a course they have not completed. To help students prepare, colleges and universities should allow students to fulfill their elective hours by allowing them to audit or take upper-level classes pass/fail to gain that knowledge. I was able to gain the knowledge needed to pass with a four-year degree; however, I attended a university on the quarter system and had the opportunity to take a larger variety of courses than would be offered on the semester system. I used my electives to take additional computer programming courses and additional accounting and finance/management courses, all of which contributed to my success in passing the exam and success in my career.
Alternatively, similar to the bar exam, I believe allowing exam candidates to qualify for the exam by "reading" or apprenticing under another CPA should be instigated. This would allow persons who have been connected to the profession as an experienced staffer to qualify to take the exam. Again, it may be difficult for such persons to pass, however, their ability to learn the material should not be limited to the classroom.
I also believe that many students are not exposed to accounting and do not understand exactly what those in the profession are responsible for. I know the high schools in my area do not offer accounting as a course option. My interest in accounting started at the high school level because I did take accounting in high school and because I had a family member who was a CPA. We need to reach students at that level to generate interest and elevate our profession in their eyes.
I am eager to hear other comments as I know this question is on the AICPA's radar and I fear our credibility will be watered down if too many things are done at once to remove barriers to entice students.
I believe our professionalism and credibility is lifted by having a rigorous exam requiring us to prove our level of knowledge. When I took the exam, it was even more rigorous than it is today, so it has already been watered down. I believe the exam is important, just as attorneys are required to pass the bar exam and medical professionals are required to pass their boards. So I am in favor of keeping that in place. We would not want to leave our health in the hands of a health professional that was unable to pass their boards, likewise the public's confidence in a CPA is somewhat dependent on knowing that we too passed a rigorous exam.
However, I do believe the 150-hour requirement should be lifted. A four-year degree (or equivalent) should be sufficient for qualification to take the exam. That is not to say they would be fully prepared to pass the exam if there is material on the exam covered in a course they have not completed. To help students prepare, colleges and universities should allow students to fulfill their elective hours by allowing them to audit or take upper-level classes pass/fail to gain that knowledge. I was able to gain the knowledge needed to pass with a four-year degree; however, I attended a university on the quarter system and had the opportunity to take a larger variety of courses than would be offered on the semester system. I used my electives to take additional computer programming courses and additional accounting and finance/management courses, all of which contributed to my success in passing the exam and success in my career.
Alternatively, similar to the bar exam, I believe allowing exam candidates to qualify for the exam by "reading" or apprenticing under another CPA should be instigated. This would allow persons who have been connected to the profession as an experienced staffer to qualify to take the exam. Again, it may be difficult for such persons to pass, however, their ability to learn the material should not be limited to the classroom.
I also believe that many students are not exposed to accounting and do not understand exactly what those in the profession are responsible for. I know the high schools in my area do not offer accounting as a course option. My interest in accounting started at the high school level because I did take accounting in high school and because I had a family member who was a CPA. We need to reach students at that level to generate interest and elevate our profession in their eyes.
I am eager to hear other comments as I know this question is on the AICPA's radar and I fear our credibility will be watered down if too many things are done at once to remove barriers to entice students.
Riquetta Brown
From my experience, it’s hard to get a CPA license because of the expensive cost of taking four parts of the exams, along with getting CPE credentials. It would be nice to get free CPE credits to get 150 hour credits to take the CPA exam, but I guess it’s impossible since I’m just a non-CPA recipient. It makes me feel better that I’m not alone. I’m still going to apply to a university to get my master’s degree in accounting and I do want to get my CPA license, but it would be nice if they lower the cost for aspiring CPAs like myself. I really appreciate your article and your concern for people who are trying to get their foot in the door in the accounting industry.
Steven T. Kirkman, CPA
I am interested and motivated to give you feedback on your question, "Is it too hard . . ." but I'm not sure if that is even the correct question.
I was convinced the exam was too hard all those years ago when I worked to pass the exam. It seemed to me the exam was intended to test what I didn't know instead of what I *did* know. That has never seemed like good policy to me.
The bigger question now is whether enough folks see the CPA designation as relevant any longer. I spoke with a former CPA yesterday who decided it was no longer relevant 11 years ago and let his certificate lapse. He felt like he was set free to serve clients better and has earned a pretty good living in the process.
This profession as a whole has been headed in the wrong direction for decades. Accounting used to be based on longstanding common-sense principles. The standard-setting bodies seem hell bent on making things ridiculously complicated instead of simply providing useful information to business owners and third parties.
New lease standards? Really? Who the hell asked for that? Who sees it as useful/helpful? Anyone?
Most CPAs are small firms, or sole practitioner guys like me. Or, they work in industry for small and midsized enterprises. And for us, the new standards are nothing but nonsense. We pay the freight but we aren't being served by leadership.
The profession better wake up. I speak to so many people who see college as a waste of time. Students don't learn anything useful and come out with a mountain of debt.
And then, anywhere they go to work someone has to teach them how to do everything.
The wrong direction in which the profession has been headed is completely in line with modern college "education." More often than not, it is a waste of time.
I am a CPA and would have qualified under the 150-hour requirement. Back in the day, a four-year degree with appropriate accounting classes meant you could sit for the exam. Two years’ experience meant you could be a CPA. There was also a path for folks with a two-year degree who happened to have five years experience (here in North Carolina). Five years of college in accounting hasn't made anything better.
One way or another, things are going to change, profoundly and permanently, in short order. The real question or issue: Will the coming changes be for the better or will we miss the opportunity to make things better?
I was convinced the exam was too hard all those years ago when I worked to pass the exam. It seemed to me the exam was intended to test what I didn't know instead of what I *did* know. That has never seemed like good policy to me.
The bigger question now is whether enough folks see the CPA designation as relevant any longer. I spoke with a former CPA yesterday who decided it was no longer relevant 11 years ago and let his certificate lapse. He felt like he was set free to serve clients better and has earned a pretty good living in the process.
This profession as a whole has been headed in the wrong direction for decades. Accounting used to be based on longstanding common-sense principles. The standard-setting bodies seem hell bent on making things ridiculously complicated instead of simply providing useful information to business owners and third parties.
New lease standards? Really? Who the hell asked for that? Who sees it as useful/helpful? Anyone?
Most CPAs are small firms, or sole practitioner guys like me. Or, they work in industry for small and midsized enterprises. And for us, the new standards are nothing but nonsense. We pay the freight but we aren't being served by leadership.
The profession better wake up. I speak to so many people who see college as a waste of time. Students don't learn anything useful and come out with a mountain of debt.
And then, anywhere they go to work someone has to teach them how to do everything.
The wrong direction in which the profession has been headed is completely in line with modern college "education." More often than not, it is a waste of time.
I am a CPA and would have qualified under the 150-hour requirement. Back in the day, a four-year degree with appropriate accounting classes meant you could sit for the exam. Two years’ experience meant you could be a CPA. There was also a path for folks with a two-year degree who happened to have five years experience (here in North Carolina). Five years of college in accounting hasn't made anything better.
One way or another, things are going to change, profoundly and permanently, in short order. The real question or issue: Will the coming changes be for the better or will we miss the opportunity to make things better?
Tina L. Caratan, MNA, CPA, CGMA
As of today I have been a practicing professional accountant for 47 years .. and a CPA for just shy of 45 years. When I started, it was the good old 120-hour bachelor’s — you could take the exam in your last term of college (at least in California), the audit standards had only been recently codified, and the Accounting Principles Board was still the principles standard setter … The Financial Accounting Standards Board was only in its infancy .. But, there were other hurdles … one being a profession that was dominated (and really dominated) by white men. Being a female that was likely my highest hurdle to overcome — while I shall admit the exam was no walk in the park.
I would state unequivocally that Kimberly Ellison-Taylor's comment was more akin to what I often say: If I had to take the exam today — it would not be pretty. Why? Because the exam is a comprehensive exam that tests overall knowledge. Why? Because I am not in the mindset to take any exam at this stage of my life. Yes, it is hard — but it was hard 47 years ago when I took it for the first time.
I was the chair and vice-chair of the California Board of Accountancy Qualifications Committee (i.e., licensing committee) for three years and served on the committee for 20 years. I was chair during the time that the California Board of Accountancy wanted to eliminate the audit requirement to be licensed — but still allow all CPAs to conduct audits. Admittedly since part of the job of the committee was to sort of act like police — we saw some of the ugly underbelly of the profession. That was just enough for me to [say], “We have to tighten the rules, not make them easier.”
I used to always laugh that we CPAs call ourselves professionals — yet back in the day we only needed a four-year bachelor's degree. Lawyers need an additional three, and doctors a whole bunch more than that. Even grade school teachers require a fifth year and I know for a fact their starting salary is way less than a CPA-wannabe's starting salary!
Maybe we should be looking at who is teaching the CPA-wannabe students. Maybe we should look at the AACSB accreditation requirements. Why are we as a profession allowing very educated folks (i.e., Ph.Ds) teach the next generation [when they] have never worked a day in the profession themselves? Why are the firms not providing any premium for those that earned their official master’s? Where I taught as an adjunct for 10 years (San Francisco State University) many of our students got their 150 with only a bachelor's degree — they loaded up on community college GE credits and then gamed the system at SFSU to take classes not in the order the department recommended so that they were not forced to graduate by the registrar's office. Yes, this was a cheaper way for them to gain their credits — but is it what we are seeking as a profession?
While not true of all students today, there is an undercurrent of "I want it all now" ... Why get a fifth year when I can major in finance and go work in the investment banking world? I get that, but is that what we should be looking at? What we should be telling students is that accounting is the cornerstone of all business — that becoming a CPA doesn't pigeonhole you, but rather opens a host of doors for you career-wise. But when the teachers don't know the doors it opens, how can the students be informed?
I have a myriad of friends in the CPA exam review business, and they have lamented about this for at least a few years … I figured it was because it was eating into their business — and it was — but what happened to the "trusted advisor?" Is it only numbers we seek or is it qualified practitioners?
Lessening the rules is not a solution — changing how we view our profession would be a better approach.
PS: My master's degree was earned 40 years after I got my bachelor's ... It is a master's in nonprofit administration. Interestingly enough, while taking the course work, I reflected on my professional career and went, "Damn, if I had had an organizational management class in college I could have been better at my profession… .”
I would state unequivocally that Kimberly Ellison-Taylor's comment was more akin to what I often say: If I had to take the exam today — it would not be pretty. Why? Because the exam is a comprehensive exam that tests overall knowledge. Why? Because I am not in the mindset to take any exam at this stage of my life. Yes, it is hard — but it was hard 47 years ago when I took it for the first time.
I was the chair and vice-chair of the California Board of Accountancy Qualifications Committee (i.e., licensing committee) for three years and served on the committee for 20 years. I was chair during the time that the California Board of Accountancy wanted to eliminate the audit requirement to be licensed — but still allow all CPAs to conduct audits. Admittedly since part of the job of the committee was to sort of act like police — we saw some of the ugly underbelly of the profession. That was just enough for me to [say], “We have to tighten the rules, not make them easier.”
I used to always laugh that we CPAs call ourselves professionals — yet back in the day we only needed a four-year bachelor's degree. Lawyers need an additional three, and doctors a whole bunch more than that. Even grade school teachers require a fifth year and I know for a fact their starting salary is way less than a CPA-wannabe's starting salary!
Maybe we should be looking at who is teaching the CPA-wannabe students. Maybe we should look at the AACSB accreditation requirements. Why are we as a profession allowing very educated folks (i.e., Ph.Ds) teach the next generation [when they] have never worked a day in the profession themselves? Why are the firms not providing any premium for those that earned their official master’s? Where I taught as an adjunct for 10 years (San Francisco State University) many of our students got their 150 with only a bachelor's degree — they loaded up on community college GE credits and then gamed the system at SFSU to take classes not in the order the department recommended so that they were not forced to graduate by the registrar's office. Yes, this was a cheaper way for them to gain their credits — but is it what we are seeking as a profession?
While not true of all students today, there is an undercurrent of "I want it all now" ... Why get a fifth year when I can major in finance and go work in the investment banking world? I get that, but is that what we should be looking at? What we should be telling students is that accounting is the cornerstone of all business — that becoming a CPA doesn't pigeonhole you, but rather opens a host of doors for you career-wise. But when the teachers don't know the doors it opens, how can the students be informed?
I have a myriad of friends in the CPA exam review business, and they have lamented about this for at least a few years … I figured it was because it was eating into their business — and it was — but what happened to the "trusted advisor?" Is it only numbers we seek or is it qualified practitioners?
Lessening the rules is not a solution — changing how we view our profession would be a better approach.
PS: My master's degree was earned 40 years after I got my bachelor's ... It is a master's in nonprofit administration. Interestingly enough, while taking the course work, I reflected on my professional career and went, "Damn, if I had had an organizational management class in college I could have been better at my profession… .”
Keith Thompson, CPA
Finally someone addressing the real problem with our profession. I said this when it first was handed down from folks at the institute, much like today's overblown and over-egoed politicians. To require an extra year to become a CPA was going to destroy our industry, and it has. We cannot find any accountants to hire even at an increase in pay. They are just not to be found and that is the result of this bizarre 150 credit hour requirement. Let's face it, accounting is certainly not brain surgery or rocket science. There is no need for an extra 30 hours of electives to meet the requirement to become a CPA these days. Yes, 30 hours in tax, accounting, auditing, QuickBooks, and payroll would help a potential employee, but not 30 hours of basket weaving. ...
This problem will only get worse with time.
This problem will only get worse with time.
Danyelle Arnoni, accounting student
I am a current student working for my bachelor’s in accounting as I have wanted to be a CPA since 10th grade. When I graduate I will have to move away from my home to sit for the CPA exam as the degree I will receive will not allow me to sit for the exam in Indiana. Fingers crossed I can be a CPA in … five years. :( I have two years of school left.
John Lowndes, EA, MBA
In the profession, at this point in time it seems that talent cannot be found anywhere. For the past five to six years or so, it seems that the gap just continues to widen with the qualified and non-qualified applicants ... and even the number of candidates generally speaking.
I've worked for various firms for the past 10 years now, and I've never seen the talent pool this lean until now. I'm a senior at a mid-regional firm here in Phoenix, and the difference between my level of experience and what's available on the market right now is far and few. If we were to look for a step higher (manager or senior manager) … good luck. That talent doesn't exist. I have recruiters in my inbox daily via LinkedIn from across the country looking for skills like mine because of this gap.
Touching on the CPA exam: I decided to revisit the CPA exam again this past year. I studied with a different product this time, studied much more rigorously, and when I sat for the first section I found myself in a scenario where the "percentages" of content I was told I was going to see from each particular section didn't appear to be as advertised. I noticed too that there were questions and simulations on my exam that weren't in my materials (not the first time I've noticed), and I found myself guessing through a large portion of the exam. Surprisingly, I got a 68, but when I bounced this off my peers they told me they did the same, and, "It's the luck of the draw, you're going to have exams like that." Now I know what I'm relaying isn't "uncommon." Yet, I'm not sure how someone who is already in the profession for years, has a family, and couldn't retain the materials/content from front to back is supposed to approach the next go around or their next section without some obvious looming questions. There's so much content, and so little that's applied in the real world of a CPA, and such a small time frame.
I'm sharing all of this because these are decisions that individuals like myself, and those that aren't like myself, are now facing. Do I sacrifice everything and try and pass an exam that I'll learn some (not a mind-blowing amount) applicable skills, that may give me a small increase in my check and perhaps a better title? Or, do I say forget it and save the 1,000 hours of my time I'll never get back "maybe" passing it? Keep in mind all of the distractions and time constraints of living your everyday life, all while trying to do this in an 18-month window ... I personally think I'm in a comfortable place in my life where I can throw in the towel and say "No thank you." Why? I don't need it.
The test itself just isn't a proper evaluation of one’s understanding of the content either. I've worked with a plethora of CPAs this past 10 years that just didn't have it. Sure, they passed a test, but the test is designed for those that are great at cramming, and great test-takers. It's not great at identifying a true understanding of the content. Some of the smartest and talented people in this industry I've worked with weren't CPAs.*
Put this all aside, I believe there are some other variables at play that are worth mentioning:
1. These new generations are much more conscious of their personal time and freedoms. Many don't want to work the hours of an average accountant, let alone a tax accountant where they potentially have little to no life three to five months of the year. In the article you mentioned not wanting to go back to school for the 150 credits. I think this has a lot to do with it, along with the cost of higher education.
2. The pay. Who wants to work the hours many of us work when they can spend less hours and get paid more in other industries?
3. Application. Something the CPA exam has been trying to get closer to on the exam aspect. I know the AICPA has been working on closing the gap at the collegiate level too but ... On the job, these kids leaving school and walking onto the job may understand accounting, but the application just isn't there. That has put a real pinch on employers when hiring green accountants.
I think serious changes need to be considered for the CPA exam in order for the license to stay relevant. The structure and content of the test, the number of tests, the time-frame to pass it, the amount of hours to pass the exam, etc. Right now, it makes no sense for people to go out of their way, especially when they feel like the test itself is designed to make them fail.
I've worked for various firms for the past 10 years now, and I've never seen the talent pool this lean until now. I'm a senior at a mid-regional firm here in Phoenix, and the difference between my level of experience and what's available on the market right now is far and few. If we were to look for a step higher (manager or senior manager) … good luck. That talent doesn't exist. I have recruiters in my inbox daily via LinkedIn from across the country looking for skills like mine because of this gap.
Touching on the CPA exam: I decided to revisit the CPA exam again this past year. I studied with a different product this time, studied much more rigorously, and when I sat for the first section I found myself in a scenario where the "percentages" of content I was told I was going to see from each particular section didn't appear to be as advertised. I noticed too that there were questions and simulations on my exam that weren't in my materials (not the first time I've noticed), and I found myself guessing through a large portion of the exam. Surprisingly, I got a 68, but when I bounced this off my peers they told me they did the same, and, "It's the luck of the draw, you're going to have exams like that." Now I know what I'm relaying isn't "uncommon." Yet, I'm not sure how someone who is already in the profession for years, has a family, and couldn't retain the materials/content from front to back is supposed to approach the next go around or their next section without some obvious looming questions. There's so much content, and so little that's applied in the real world of a CPA, and such a small time frame.
I'm sharing all of this because these are decisions that individuals like myself, and those that aren't like myself, are now facing. Do I sacrifice everything and try and pass an exam that I'll learn some (not a mind-blowing amount) applicable skills, that may give me a small increase in my check and perhaps a better title? Or, do I say forget it and save the 1,000 hours of my time I'll never get back "maybe" passing it? Keep in mind all of the distractions and time constraints of living your everyday life, all while trying to do this in an 18-month window ... I personally think I'm in a comfortable place in my life where I can throw in the towel and say "No thank you." Why? I don't need it.
The test itself just isn't a proper evaluation of one’s understanding of the content either. I've worked with a plethora of CPAs this past 10 years that just didn't have it. Sure, they passed a test, but the test is designed for those that are great at cramming, and great test-takers. It's not great at identifying a true understanding of the content. Some of the smartest and talented people in this industry I've worked with weren't CPAs.*
Put this all aside, I believe there are some other variables at play that are worth mentioning:
1. These new generations are much more conscious of their personal time and freedoms. Many don't want to work the hours of an average accountant, let alone a tax accountant where they potentially have little to no life three to five months of the year. In the article you mentioned not wanting to go back to school for the 150 credits. I think this has a lot to do with it, along with the cost of higher education.
2. The pay. Who wants to work the hours many of us work when they can spend less hours and get paid more in other industries?
3. Application. Something the CPA exam has been trying to get closer to on the exam aspect. I know the AICPA has been working on closing the gap at the collegiate level too but ... On the job, these kids leaving school and walking onto the job may understand accounting, but the application just isn't there. That has put a real pinch on employers when hiring green accountants.
I think serious changes need to be considered for the CPA exam in order for the license to stay relevant. The structure and content of the test, the number of tests, the time-frame to pass it, the amount of hours to pass the exam, etc. Right now, it makes no sense for people to go out of their way, especially when they feel like the test itself is designed to make them fail.
An aspiring CPA
I'm working at a CPA firm and studying for my license. I think that with the grueling hours of tax season and the needed recuperation afterwards on top of working full time, the 18-month time limit to take four exams is the hardest part for me. Not many college grads can afford time off to study and not work.
Timothy S. Hefty, CPA, CFE, CFF, DABFA
I said when the powers that be passed the 150-hour requirement for the CPA certificate that it was the first step to the end of our profession. Why? Well, that is because our supply of future accountants are today’s 18-year-old high school seniors being guided by high school and college guidance counsellors. Ask your 18-year-old self which you would choose:
As a profession, we need to drop the 150-hour requirement as a starting point. It is discouraging too many from even considering the profession.
We need to look at our pay structure and work-hour requirements. Salaries need to increase, work hours need to be adjusted.
Amazingly, in my opinion, the one item that everyone says needs to change, the exam, is fine as is. When the other items change, the exam, a one-time challenge, will not seem like the obstacle.
- Four years of college, or five years of college to be considered the pinnacle of your profession.
- A starting salary of $80,000 per year or a starting salary of $50,000 per year.
- A work year of 2,000 hours or a work year of 2,500 hours.
- Certification as one of the top professionals either through the completion of a course or passing a rigorous exam.
As a profession, we need to drop the 150-hour requirement as a starting point. It is discouraging too many from even considering the profession.
We need to look at our pay structure and work-hour requirements. Salaries need to increase, work hours need to be adjusted.
Amazingly, in my opinion, the one item that everyone says needs to change, the exam, is fine as is. When the other items change, the exam, a one-time challenge, will not seem like the obstacle.
Mary J. Miller, CPA
I teach accounting full time at a local university as well as maintain a private practice. I have been teaching for 20 years, a second career after my first one in public accounting. When the 150-hour requirement was proposed, I was against it. It was a knee-jerk reaction to the blemished reputation of accountants after the debacle of Enron and others. More education meant better accountants. Raise the bar to enter the profession and faith will be restored in the profession. But did that really happen?
The unintended consequence of the 150-hour rule was that, by raising the bar to enter the profession, there are fewer individuals entering the profession. Did we raise the bar too high? I thought so then and still think so now. How much more knowledge are students getting with 30 more hours of education? Would we be better served by decreasing the education and increasing work time requirements?
I think if you surveyed practitioners, they would rather hire someone with BS in accounting and an additional year of work experience instead of an additional year of education. The profession is changing, what we as accountants do is changing, and the requirements should change too.
The unintended consequence of the 150-hour rule was that, by raising the bar to enter the profession, there are fewer individuals entering the profession. Did we raise the bar too high? I thought so then and still think so now. How much more knowledge are students getting with 30 more hours of education? Would we be better served by decreasing the education and increasing work time requirements?
I think if you surveyed practitioners, they would rather hire someone with BS in accounting and an additional year of work experience instead of an additional year of education. The profession is changing, what we as accountants do is changing, and the requirements should change too.
Sandy Felker, CPA
I think the 150-hour requirement should be eliminated. The exam has always been difficult and I think it should be. The time and effort it takes to pass the exam says something about the individual. These are the type of people we want in the industry. There are plenty of opportunities for accountants without the designation in public and private practice. So it is a matter of choice whether one decides it is worth the effort.
I believe you are also correct about salaries. Private industry typically pays much better than public not just at the entry level. This is a serious issue. Unfortunately the typical CPA firm does not have the ability to raise capital the way a corporation does. I don’t know how you resolve this issue. Possible suggestions: more flexible hours, more paid time off since the industry is somewhat cyclical, shorter work days during the summer which is typically the slow time?
I believe you are also correct about salaries. Private industry typically pays much better than public not just at the entry level. This is a serious issue. Unfortunately the typical CPA firm does not have the ability to raise capital the way a corporation does. I don’t know how you resolve this issue. Possible suggestions: more flexible hours, more paid time off since the industry is somewhat cyclical, shorter work days during the summer which is typically the slow time?
Jonathan T. Marks, CPA, CFF, CITP, CGMA, CFE
The CPA is the gold standard, and it should be hard to obtain. The public relies on us to ensure financial statements are complete and accurate. On other issues that involve forensic accounting and other consulting services, people look at the CPA differently than the other credentials, some which are not worth the paper they are printed on. The AICPA I think has done a good job — no, a great job — trying to articulate the importance of being a CPA and following their guidelines. I have further views, but in no way should we be making it easier. That same mentality has led to kids getting trophies for 6th place.
Marvin K. Odom, CPA/PFS
I read your article regarding the difficulty of becoming a CPA and the decline of new recruits. While I do agree, we need to look for potential solutions to this growing issue, changing the exam is not the answer. The real issue exists within the bloated college experience and rising tuition costs. Four years to obtain a degree in accounting and qualify for the exam is not only ample but preferable if a path of higher education allowed students to focus on an area of concentration without subjecting themselves to subjects they should have been exposed to at the high school level. Is a two year associate’s degree less valuable than a four-year degree that has been diluted with general study requirements? I say no, students should be allowed to focus on their career choice earlier and with more intensity, thereby obtaining the necessary skills within a shorter time frame. Correct the burdensome time and financial constraints of obtaining a 150-hour five-year equivalent degree and I suspect you’ll see recruitment grow.
Jeremy Grant, CPA exam candidate
No, I don't think it is [too hard to become a CPA].
Is it too hard to become a doctor?
Obviously being a CPA and being a doctor are not of the same gravity, as a future CPA (two of four passed, taking BEC today), I'll likely never have someone's life in my hands. The CPA, however, is also not as difficult as becoming a doctor. There are professional business certifications for each area in the CPA, so there's no technical certification gap that needs to be filled by making it easier to become a CPA. If there's any issue with being a CPA, it's in the work-life balance (or lack thereof) achieved by big accounting firms (the major supply and demand for CPAs). Any perceived shortage is due to firms failing to compensate adequately for the loss of balance, or failing to achieve balance that would keep employees at firms. The solution isn't to saturate the market by making certification easier.
Is it too hard to become a doctor?
Obviously being a CPA and being a doctor are not of the same gravity, as a future CPA (two of four passed, taking BEC today), I'll likely never have someone's life in my hands. The CPA, however, is also not as difficult as becoming a doctor. There are professional business certifications for each area in the CPA, so there's no technical certification gap that needs to be filled by making it easier to become a CPA. If there's any issue with being a CPA, it's in the work-life balance (or lack thereof) achieved by big accounting firms (the major supply and demand for CPAs). Any perceived shortage is due to firms failing to compensate adequately for the loss of balance, or failing to achieve balance that would keep employees at firms. The solution isn't to saturate the market by making certification easier.
Frank Myers
I was one of the last classes that graduated with a four-year degree. I was going to school full time, working full time and raising a family. The last thing I wanted to do was study for a terrifying test that basically said that I graduated college and retained this pertinent knowledge. I could make good money working in private industry and never need the CPA designation. I didn’t even have to be a CPA to do taxes. Heck, for a while, I worked with a firm that did short-term loans and then taxes during tax season. Why would I get a CPA certificate??
There may be some glamor in becoming a CPA, but from my viewpoint, it isn’t worth it.
That is my two cents.
There may be some glamor in becoming a CPA, but from my viewpoint, it isn’t worth it.
That is my two cents.
Sarah Griffin
I enjoyed your article posing the question, if it is too hard to become a CPA now. One rule I’d love to see the state board abolish is the rule that you have to pass all four parts in a 18-month window. I’m a mom of two that graduated over 15 years ago. I’ve passed various parts, but it is hard with everything I have going on to make that window. I keep losing credits.
Anyways, keep up the good work. It’s important to continue the conversation. The shortage of CPAs is a big problem and growing.
Anyways, keep up the good work. It’s important to continue the conversation. The shortage of CPAs is a big problem and growing.
An anonymous CPA
While the exam is not too difficult, it is actually too much easier. It's been current culture redesigned to make it too easy to pass. Passing rates may not have changed much, but has the exam and preparation changed too? Yes.
However, is the CPA path too difficult?
Again, probably not. I've had three kids that entered college with credits making them second-year students after only the first semester. Then, with all of their different paths and programs, only one will graduate early. The others were told it would take the full four years. None, unfortunately, are going into accounting: "We work too much." I'm self-employed. So could more students knowing they are going to college obtain credits while in high school, yes. Would that help their path, yes. Does it make it harder or too difficult, no. Do the kids aspiring to become CPAs get inspiration from us CPAs, definitely! It's the interaction and having them see our lives and want to emulate parts of it that allows them to choose the accounting profession, versus just saying the requirements or work ethic is too hard.
However, is the CPA path too difficult?
Again, probably not. I've had three kids that entered college with credits making them second-year students after only the first semester. Then, with all of their different paths and programs, only one will graduate early. The others were told it would take the full four years. None, unfortunately, are going into accounting: "We work too much." I'm self-employed. So could more students knowing they are going to college obtain credits while in high school, yes. Would that help their path, yes. Does it make it harder or too difficult, no. Do the kids aspiring to become CPAs get inspiration from us CPAs, definitely! It's the interaction and having them see our lives and want to emulate parts of it that allows them to choose the accounting profession, versus just saying the requirements or work ethic is too hard.
Dominic Frasca
For me and the people I know the additional credits did not factor in that much. I planned ahead and did a double major. Yes it was an annoyance if you didn't plan ahead, but a lot of the people I know did community college for those credits.
In all honesty the main factor holding me back from the CPA is the work-life balance that comes with public accounting. I think your article briefly touched on this with the statistics but failed to expand. After spending anywhere from eight to 12 hours staring at a screen and traveling to and from the client, the last thing I have the energy for is studying.
I think making the exam easier will water down the value of it. I think the large firms need to step up and allow employees to block off an hour a day to study. They've done a great job making the exams more financially available with exam bonuses and free study materials, so this seems like the next logical step to me.
In all honesty the main factor holding me back from the CPA is the work-life balance that comes with public accounting. I think your article briefly touched on this with the statistics but failed to expand. After spending anywhere from eight to 12 hours staring at a screen and traveling to and from the client, the last thing I have the energy for is studying.
I think making the exam easier will water down the value of it. I think the large firms need to step up and allow employees to block off an hour a day to study. They've done a great job making the exams more financially available with exam bonuses and free study materials, so this seems like the next logical step to me.
Christine Kuglin, JD, LLM Taxation, CPA
Is it too hard to become a CPA? My answer is no and here is why.
A few months ago, I wrote an article for Accounting Today titled “Becoming a CPA at 60: Ten Tips for Passing the CPA exam .” In December 2020, during the winter COVID surge, I decided to sit for the CPA exam. In spite of having earned a master’s degree in accounting eight years earlier, I had not sat for the CPA exam. I don’t know if it was fear, laziness or lack of desire, but I had delayed taking the exam for nearly a decade. So, I get the question, “Is it too hard to become a CPA?”
Over the past nine months, I spent 800 hours applying for, studying, and sitting for all five sections — ethics is a separate exam. I passed the first three sections on the first try, and failed Audit. I had to take it a second time. The entire time, I worked full-time and continued family responsibilities. It was extremely difficult; I won’t lie to you. There is nothing about becoming a CPA that is easy, from the college coursework to the final license application when the exam is finished. But, after nine months of hard effort, and waiting eight years to take the leap, I am now a licensed CPA. Let me give you some reasons why the effort to earn the letters “CPA” is 100% worth the effort.
College courses
Going through a rigorous credentialing process not only provides independent documented proof that the individual has the minimum skills necessary to serve in their position, but it also demonstrates the person has those not-so-measurable attributes needed. Struggle, perseverance, discipline, commitment, dedication, humility, and maturity of character. That is why becoming a CPA is not “too” hard. CPA is a credential that is a sign of integrity and trust. It takes years and dedication just as it does for doctors and attorneys. The value is completely worth the effort it takes to earn that right to call yourself a CPA.
A few months ago, I wrote an article for Accounting Today titled “
Over the past nine months, I spent 800 hours applying for, studying, and sitting for all five sections — ethics is a separate exam. I passed the first three sections on the first try, and failed Audit. I had to take it a second time. The entire time, I worked full-time and continued family responsibilities. It was extremely difficult; I won’t lie to you. There is nothing about becoming a CPA that is easy, from the college coursework to the final license application when the exam is finished. But, after nine months of hard effort, and waiting eight years to take the leap, I am now a licensed CPA. Let me give you some reasons why the effort to earn the letters “CPA” is 100% worth the effort.
College courses
- The credential is backed by years of study, not just accounting but in the general areas of business which are necessary to serve as an advisor on critical business matters. A CPA must have knowledge in more than debits and credits. They must understand management, marketing, information systems and more. The 150 credits are necessary to cover all the areas where a CPA should have knowledge.
- You can complete the 150 hours of course work at local colleges and online. The college classes do not need to be expensive, and you can earn the 150 credits where and when you can.
- You don’t need to attend prestigious colleges to land a job if you earn a CPA license. The demand for employees is there, so where you attended college is somewhat leveled by passing the exam.
- This time of study is a time to grow in experience and maturity. The CPA credential carries the necessity of commitment to excellence in action and decision. The years of study and struggle allow the time and determination to let that happen. This level of perseverance teaches discipline.
- To qualify for the exam, you must organize your work into an application packet. If you cannot complete this task, how can you attest to the fair presentation of a company’s records. Have you met the requirements to sit for the exam? This teaches self-reflection and organization. These are positive skills essential of a CPA.
- Despite practicing in various levels of accounting for almost 20 years and possessing bachelor’s and master’s degrees in accounting, studying for the CPA exam brought all facets of the profession into focus. The CPA exam is brutal. Yet, the 800 hours of constant study every day over topics I knew but not to this depth, solidified my knowledge. The different sections force you to shore up areas you may not understand. This is necessary to hold oneself out as an expert in accounting and business.
- I passed the first three sections fairly easily, and by the time the fourth section came along, I was confident I would pass. Then I failed. I was in disbelief when I saw the dreaded “Fail.” Yet it taught me a very valuable lesson. Don’t become too confident in your efforts. Take the extra step. Double-check your answers. This failure taught humility and awareness to the consequence of failure before practicing this lesson with actual clients.
- I am 60 years old. My memory is not what it used to be, but focusing my energy on the complex topics enhanced my ability to focus and synthesize information. There were times I thought I could not go on one more day, but I did. This perseverance is an excellent trait for any professional regardless of age.
- To balance my job, my family and studying for the exam I had to practice discipline and patience. There is no quick path to passing the exam. These are personal attributes which exemplify traits expected of a CPA.
- This much effort makes my credentials valuable to me. When something is difficult to earn, the chances that you will value it and take care to protect it suggests you will work hard not to compromise and risk losing the license.
Going through a rigorous credentialing process not only provides independent documented proof that the individual has the minimum skills necessary to serve in their position, but it also demonstrates the person has those not-so-measurable attributes needed. Struggle, perseverance, discipline, commitment, dedication, humility, and maturity of character. That is why becoming a CPA is not “too” hard. CPA is a credential that is a sign of integrity and trust. It takes years and dedication just as it does for doctors and attorneys. The value is completely worth the effort it takes to earn that right to call yourself a CPA.
Rick Balog, CPA, CFF, CIA, DACFE
You get what you pay for. The CPA exam is hard because the damage that bad CPAs can cause is enormous!
Do you want an Equity Funding every year? Shareholders depend on the skills and ethics of CPAs every time they buy stock or make an investment. Do you want incompetent CPAs signing off on audits?
We are raising a generation of wimps because their parents gave them everything they wanted without them lifting a finger to earn it.
Professors pass students because failing them gets the teachers fired. So they just push them along. No wonder they can't pass, they just never learned the material.
It took me three times to pass it and I do not regret one day of prep. I've been a CPA since 1974. Not one complaint ever filed.
I was an executive office partner with KPMG and now in private practice by choice.
Make it easier and you cheapen the brand. Back then we could not use calculators!
I taught accounting in three different universities. Every year I would get some bubbly blonde ask me what she needed to do to get an A. My response was always "Study!"
We do not need to mass produce CPAs just because some snowflake may "feel bad" when they fail!
Do you want an Equity Funding every year? Shareholders depend on the skills and ethics of CPAs every time they buy stock or make an investment. Do you want incompetent CPAs signing off on audits?
We are raising a generation of wimps because their parents gave them everything they wanted without them lifting a finger to earn it.
Professors pass students because failing them gets the teachers fired. So they just push them along. No wonder they can't pass, they just never learned the material.
It took me three times to pass it and I do not regret one day of prep. I've been a CPA since 1974. Not one complaint ever filed.
I was an executive office partner with KPMG and now in private practice by choice.
Make it easier and you cheapen the brand. Back then we could not use calculators!
I taught accounting in three different universities. Every year I would get some bubbly blonde ask me what she needed to do to get an A. My response was always "Study!"
We do not need to mass produce CPAs just because some snowflake may "feel bad" when they fail!
Jeff McGowan CPA
I am a practitioner-CPA turned academic mostly now, and I think yes to your answer of [whether it is] too tough. I am in constant battle with finance professors over the best business students, and having to explain the extra year and the long-term benefits of being a CPA, is a difficult argument to win.
And the CPA Evolution project, in my opinion, is going to chase away even more as the knowledge base to earn the specialty part, is equivalent to master’s degree knowledge. They are thinking that a lot of IT people will come into the CPA ranks by emphasizing data analytics in the new exam — three Core plus one specialty. I fear a lot of people will get through three parts, but not able to pass the fourth specialty part, and we will be left with even less CPAs.
And the CPA Evolution project, in my opinion, is going to chase away even more as the knowledge base to earn the specialty part, is equivalent to master’s degree knowledge. They are thinking that a lot of IT people will come into the CPA ranks by emphasizing data analytics in the new exam — three Core plus one specialty. I fear a lot of people will get through three parts, but not able to pass the fourth specialty part, and we will be left with even less CPAs.
John Stuller, CPA exam candidate
I am graduating with my master’s in accounting in December from the University of Missouri (Mizzou) after returning to school with my BS in accounting from 2001. I always wanted to obtain my CPA but never had the time or money until now. I am fortunate enough to have a spouse that can support me in my journey. If I had to work full-time and raise kids, this would be incredibly difficult.
Here is the problem with the CPA: all of the logistical nightmares and red tape that drive the machine. The CPA exam should be integrated with the degree. There is no reason why a student should need to take a very expensive prep course to pass the exam after they have obtained 150 hours. My school did not even offer me a tax class on partnerships and my advance cost class covered items that are not tested on the exam. Fortunately, Mizzou students have a very high pass rate but more focus should be on getting students to pass the CPA. It feels like Mizzou is in a money-making partnership with Becker that sends me emails weekly on signing up!
Wish me luck on the exams!
Here is the problem with the CPA: all of the logistical nightmares and red tape that drive the machine. The CPA exam should be integrated with the degree. There is no reason why a student should need to take a very expensive prep course to pass the exam after they have obtained 150 hours. My school did not even offer me a tax class on partnerships and my advance cost class covered items that are not tested on the exam. Fortunately, Mizzou students have a very high pass rate but more focus should be on getting students to pass the CPA. It feels like Mizzou is in a money-making partnership with Becker that sends me emails weekly on signing up!
Wish me luck on the exams!
Doris Emond, CPA
I'm glad you asked. I'm fast approaching the end of my career which started, out of high school, working at various bookkeeping positions. As time went on and I was raising my family (while working full-time) I found the opportunity to finally go to college. A local school offered a "weekend program" which consisted of three trimesters — September to December, January to May, and June to August. I was able to complete my accounting degree while working full-time and raising three children in about five years. I won't tell you how many times I sat for the CPA exam — suffice it to say that without perseverance I would never have passed. I can honestly tell you that if I was required to do another year of college I don't think I could have. The cost alone would have prohibited it. I paid off my student loans over the next 10 years, just in time for my firstborn to go to college. Not requiring those additional credits made it possible for me to become a CPA, but not easier.
Jack Cox, CPA, MBA
In answer to your question, "Yes, it is too hard to become a CPA," but for the most part, these are self-inflicted wounds created by the profession.
I have been a CPA for almost 40 years and am still active. Although I do not perform accounting or tax work per se, I am considering adding that to my consulting and M&A brokerage offering. Nonetheless, in my dealings with clients, the CPA credential is the most respected credential I have ever earned. That is first and foremost. The business community holds the designation in high regard. With that said, we need to determine why students are not pursuing the accounting profession, which will ultimately diminish its stature in the long term.
Your article reports the decline in number in the profession and there seems to be two reasons: First, students adopting a finance major instead of accounting. When I was in school, there was no such thing as "finance majors." I subsequently earned my MBA and on top of that a post-graduate certificate in finance, but I was an accounting major. Accounting provided me with the basics to expand into other areas. Some students decide to pursue finance directly; I think it is more of a graduate degree, but that is their choice. However, some students may pursue it since the credit requirement is not as onerous as the accounting requirement, which brings me to my next point.
The second reason is the expansion to the 150 credit hour requirement for an accounting degree — or at least 150 credit hours to qualify as a CPA, if I have that distinction correct. If I recall, the impetus for this increase in academic requirement came about from the major accounting and audit failures in the early 2000s, particularly Enron and Worldcom. The solution — or punishment — the profession imposed upon itself was to extend the academic requirement, to not necessarily accounting courses, as if more education was the cause of the audit failures. I remember thinking at the time that education was not the problem. The problem was caused by bad people and it was not stopped by people of insufficient character. How are these flaws addressed by the time and expense of another year of course work?
So where has this left the profession? Simply the profession cannot compete with majors that offer typical four-year undergraduate degrees. Certainly there are longer degrees, such as physical therapy, but those students graduate with an advanced degree, a doctorate, in their profession. A five-year accounting degree is no longer an option for the student whose parents have multiple children to support and are willing to support a child toward a four-year degree. I say it is "no longer an option" — in reality it would not have been an option for me being the first of four children who ultimately attended four-year colleges paid by our parents. This additional academic requirement simply reduces the number of accounting candidates.
What has this led to? Anecdotally I just was on a call with a colleague who had lunch today with a partner from a solid regional accounting firm. The firm's biggest challenge today — recruiting. The 150-hour requirement has created a shortage in candidates. That is how the partner explained the largest challenge at their lunch today.
Similarly, this has had to have an adverse effect on minority candidates in attracting them to the profession. The extra cost simply makes the choice to become a CPA less possible.
Finally, the public is not being served due to the lack of candidates pursuing an accounting profession and CPA certification. The public will be served with less competency.
What has been the proposed solution? I have not followed this closely, but hasn't the AICPA considered offering designations such as their business valuation accreditation to non-CPAs? Haven't boards considered licensing non-CPAs as well? I have not verified these things or where they stand, but they have certainly been discussed.
I do think, however, that the evidence is clear. The mere drop in accounting majors is evidence that the 150-credit mandate means it is more difficult to compete for college students. We are competing for college students, so let there be no misunderstanding about that. We are competing with business majors, marketing majors, and pre-law majors directly. Perhaps we are competing less with science majors, but in terms of recruiting, we certainly are competing with like majors.
This additional requirement has not created better accountants or an elite breed of accountants. The profession is broad and has a way of allowing people to find their comfort level. That could be as partners in firms, CFOs, controllers, or various accounting professions within organizations. Let's let the market and the person's abilities and ambitions decide what role they play in the chosen field of accounting. Let's not perpetuate discouraging them from pursuing an accounting career because of cost and obstacles we have placed in their way.
It is time to remove the 150 credit hour requirement.
I have been a CPA for almost 40 years and am still active. Although I do not perform accounting or tax work per se, I am considering adding that to my consulting and M&A brokerage offering. Nonetheless, in my dealings with clients, the CPA credential is the most respected credential I have ever earned. That is first and foremost. The business community holds the designation in high regard. With that said, we need to determine why students are not pursuing the accounting profession, which will ultimately diminish its stature in the long term.
Your article reports the decline in number in the profession and there seems to be two reasons: First, students adopting a finance major instead of accounting. When I was in school, there was no such thing as "finance majors." I subsequently earned my MBA and on top of that a post-graduate certificate in finance, but I was an accounting major. Accounting provided me with the basics to expand into other areas. Some students decide to pursue finance directly; I think it is more of a graduate degree, but that is their choice. However, some students may pursue it since the credit requirement is not as onerous as the accounting requirement, which brings me to my next point.
The second reason is the expansion to the 150 credit hour requirement for an accounting degree — or at least 150 credit hours to qualify as a CPA, if I have that distinction correct. If I recall, the impetus for this increase in academic requirement came about from the major accounting and audit failures in the early 2000s, particularly Enron and Worldcom. The solution — or punishment — the profession imposed upon itself was to extend the academic requirement, to not necessarily accounting courses, as if more education was the cause of the audit failures. I remember thinking at the time that education was not the problem. The problem was caused by bad people and it was not stopped by people of insufficient character. How are these flaws addressed by the time and expense of another year of course work?
So where has this left the profession? Simply the profession cannot compete with majors that offer typical four-year undergraduate degrees. Certainly there are longer degrees, such as physical therapy, but those students graduate with an advanced degree, a doctorate, in their profession. A five-year accounting degree is no longer an option for the student whose parents have multiple children to support and are willing to support a child toward a four-year degree. I say it is "no longer an option" — in reality it would not have been an option for me being the first of four children who ultimately attended four-year colleges paid by our parents. This additional academic requirement simply reduces the number of accounting candidates.
What has this led to? Anecdotally I just was on a call with a colleague who had lunch today with a partner from a solid regional accounting firm. The firm's biggest challenge today — recruiting. The 150-hour requirement has created a shortage in candidates. That is how the partner explained the largest challenge at their lunch today.
Similarly, this has had to have an adverse effect on minority candidates in attracting them to the profession. The extra cost simply makes the choice to become a CPA less possible.
Finally, the public is not being served due to the lack of candidates pursuing an accounting profession and CPA certification. The public will be served with less competency.
What has been the proposed solution? I have not followed this closely, but hasn't the AICPA considered offering designations such as their business valuation accreditation to non-CPAs? Haven't boards considered licensing non-CPAs as well? I have not verified these things or where they stand, but they have certainly been discussed.
I do think, however, that the evidence is clear. The mere drop in accounting majors is evidence that the 150-credit mandate means it is more difficult to compete for college students. We are competing for college students, so let there be no misunderstanding about that. We are competing with business majors, marketing majors, and pre-law majors directly. Perhaps we are competing less with science majors, but in terms of recruiting, we certainly are competing with like majors.
This additional requirement has not created better accountants or an elite breed of accountants. The profession is broad and has a way of allowing people to find their comfort level. That could be as partners in firms, CFOs, controllers, or various accounting professions within organizations. Let's let the market and the person's abilities and ambitions decide what role they play in the chosen field of accounting. Let's not perpetuate discouraging them from pursuing an accounting career because of cost and obstacles we have placed in their way.
It is time to remove the 150 credit hour requirement.
An aspiring CPA
I have been essentially pondering this question for the last 30+ years. Bottom line upfront, it is unnecessarily hard and it's too bureaucratic.
Quick background on me to explain my position: In the last few weeks, I passed my final CPA exam. I started college in 1987 as an accounting major and ROTC student. After getting a poor grade on a test in my sophomore year (Intermediate I), I changed my major to business admin/finance in an effort to not have my GPA negatively impact my hard-won ROTC scholarship. At the time it was described to me that the course I dropped was intended as a "weeding out" course to see who really wanted to be a CPA. I never really understood why "weeding out" was needed, especially in the second year of college, but OK, I'll go with it.
Anyway, that theme of "weeding out" seems to be a cornerstone of the CPA profession. You are either willing to suffer to be one of us, or you don't belong. The profession is filled with examples where good work is stifled and goes unrewarded if you don't have the CPA license. I have countless stories from previous employers as well as my current organization (energy, $160 million in revenue, not particularly complex financial statements), where poor performers who have the license are kept on solely because "We require a CPA to fill that role," when at the end of the day, the job function relies far more on understanding the organization and industry than it does on GAAP or tax law. I suspect we are not an outlier. The more egregious example is a case where a young woman was promoted "early" to a senior accountant role. I say early, because she had only passed two of the four exams at that point. As time passes she ends up starting a family and gets behind on the CPA. Ultimately, she was demoted from her senior accountant role, still does the same work, but now as a staff accountant, because she doesn't have the license. We are slotted for three senior accountants. We have one who is not particularly strong, one open because of insubordination, and the second open, pending this woman passing her exams. This is one example, but in my professional experience, this kind of situation is not uncommon.
As for the academic requirements, the additional 30 credits is nothing more than an unnecessary barrier to entry. Accountants love to regale each other with their tales of suffering as auditors and tax associates with Big Four firms and how tough it was for them. Adding the additional 30 credits is nothing more than adding a snowstorm to the accountant version of "I used to walk to school uphill, both ways… ." If you look at any MSA program, if you were an accounting major undergrad, it is really either a stealth MS in tax, or an MBA (due to the required business classes — which may also add as many as 18-24 additional credits to your degree requirement). Again, none of this is terribly well explained to the aspiring CPA until they are already on the path. I'm not downplaying the benefit of more education, I just think that it tends to be a bit of overkill considering what the typical CPA does for a job, or what is required to pass the exams.
Lastly, in my opinion, the additional requirements are an effort by the profession to get beyond the stain of Enron and the reasons why we have Sarbanes-Oxley, etc. I found it fascinating at the time (and still do), that the response to conducting or aiding in criminal activity by accountants was to create more opportunities for accountant employment. I was appalled during my studies to see how heavily it was emphasized that the auditor/tax accountant is not responsible/has limited responsibility for errors in their work product as long as they followed "procedures." I understand ownership of the financial statements/tax return, but the way that it seems the profession can twist itself into a knot to "not be responsible" is somewhat laughable considering the degree of requirements that go into becoming a licensed CPA and how important a clean audit or tax return is in the eyes of industry and investors.
I worked many hours to pass my exams. In fact, I am grateful to have had them to study for during the COVID experience, as I had something to focus on that was not the pandemic. However, I do not feel I came out the other side with a newfound volume of knowledge that necessarily equates to the time spent to pass the tests. I clearly "suffered" which seems to be the core requirement … "How willing are you to suffer to be one of us?" I'll let you know in a couple of years when I open my paycheck to see if it was worth it.
Quick background on me to explain my position: In the last few weeks, I passed my final CPA exam. I started college in 1987 as an accounting major and ROTC student. After getting a poor grade on a test in my sophomore year (Intermediate I), I changed my major to business admin/finance in an effort to not have my GPA negatively impact my hard-won ROTC scholarship. At the time it was described to me that the course I dropped was intended as a "weeding out" course to see who really wanted to be a CPA. I never really understood why "weeding out" was needed, especially in the second year of college, but OK, I'll go with it.
Anyway, that theme of "weeding out" seems to be a cornerstone of the CPA profession. You are either willing to suffer to be one of us, or you don't belong. The profession is filled with examples where good work is stifled and goes unrewarded if you don't have the CPA license. I have countless stories from previous employers as well as my current organization (energy, $160 million in revenue, not particularly complex financial statements), where poor performers who have the license are kept on solely because "We require a CPA to fill that role," when at the end of the day, the job function relies far more on understanding the organization and industry than it does on GAAP or tax law. I suspect we are not an outlier. The more egregious example is a case where a young woman was promoted "early" to a senior accountant role. I say early, because she had only passed two of the four exams at that point. As time passes she ends up starting a family and gets behind on the CPA. Ultimately, she was demoted from her senior accountant role, still does the same work, but now as a staff accountant, because she doesn't have the license. We are slotted for three senior accountants. We have one who is not particularly strong, one open because of insubordination, and the second open, pending this woman passing her exams. This is one example, but in my professional experience, this kind of situation is not uncommon.
As for the academic requirements, the additional 30 credits is nothing more than an unnecessary barrier to entry. Accountants love to regale each other with their tales of suffering as auditors and tax associates with Big Four firms and how tough it was for them. Adding the additional 30 credits is nothing more than adding a snowstorm to the accountant version of "I used to walk to school uphill, both ways… ." If you look at any MSA program, if you were an accounting major undergrad, it is really either a stealth MS in tax, or an MBA (due to the required business classes — which may also add as many as 18-24 additional credits to your degree requirement). Again, none of this is terribly well explained to the aspiring CPA until they are already on the path. I'm not downplaying the benefit of more education, I just think that it tends to be a bit of overkill considering what the typical CPA does for a job, or what is required to pass the exams.
Lastly, in my opinion, the additional requirements are an effort by the profession to get beyond the stain of Enron and the reasons why we have Sarbanes-Oxley, etc. I found it fascinating at the time (and still do), that the response to conducting or aiding in criminal activity by accountants was to create more opportunities for accountant employment. I was appalled during my studies to see how heavily it was emphasized that the auditor/tax accountant is not responsible/has limited responsibility for errors in their work product as long as they followed "procedures." I understand ownership of the financial statements/tax return, but the way that it seems the profession can twist itself into a knot to "not be responsible" is somewhat laughable considering the degree of requirements that go into becoming a licensed CPA and how important a clean audit or tax return is in the eyes of industry and investors.
I worked many hours to pass my exams. In fact, I am grateful to have had them to study for during the COVID experience, as I had something to focus on that was not the pandemic. However, I do not feel I came out the other side with a newfound volume of knowledge that necessarily equates to the time spent to pass the tests. I clearly "suffered" which seems to be the core requirement … "How willing are you to suffer to be one of us?" I'll let you know in a couple of years when I open my paycheck to see if it was worth it.
Amber Setter, PCC
I am writing to share some thoughts on how we might make the path to initial CPA licensure easier. I have hundreds of hours of experience providing professional coaching to CPA exam candidates that informs my perspective. Prior to being a coach, I was a campus recruiter and a learning and development manager. All of these experiences inform the many facets I see here.
- Firms need to create the space for candidates to focus on the exam first. Before client work, before CPE, do not pass go or collect your $200, pass the CPA exam. Practically speaking, the gap between graduation dates and employment start dates needs to be expanded.
- Heed the data. As you noted, 60% of participants in that Illinois survey said the issue is workload and time commitment. Cross-reference NASBA’s Candidate Performance handbook that consistently tells this story — the longer you are out of school, the harder it is to pass.
- Offer new incentives. Today firms offer the same thing they offered me in 2003. I am not kidding!! "Here is your CPA review course and some bonus dollars that will help with the fees. Good luck.”
- Teach life skills while pursuing CPA licensure. I offer a group coaching program for passing the CPA exam. The curriculum teaches one of the basics of professionalism they typically learn by doing: how to build a realistic schedule, learning why you do/don’t stay accountable, how to build an effective team, how to manage healthy boundaries, how to manage your energy, how to overcome failure.
- What isn’t working: the 150-hour rule. Well, it is working in that we have effectively created the barrier to entry we desire. Well done. Now we have more warm bodies that come saddled with additional college debt and the associated resentments and feelings of hopelessness. (We also really undercut any DE&I initiatives here … save that for another conversation.) On a related note, this is how newer licensees feel about the value of their 150 hours:
https://joinfishbowl.com/post_21h7tdkwwr .
Jeppe Lisdorf
Since you asked for opinions, I would like to offer mine.
First of all, as designations go, nothing matches the CPA in importance and recognition. Any company that’s looking to hire a CFO or higher-level finance person looks for that designation.
Second, my own story is that I’ve been working in accounting and finance for the last 10-plus years working with companies from $1 million-$75 million. I’ve done all the accounting, finance and management reporting and worked with investment bankers for M&A transactions. There was a time where I wanted to work more in private equity, so I studied for (and passed) the first two levels of the CFA exam, before acknowledging that it was not for me.
I would love to have a chance to obtain the CPA designation, but because my education was in another country and a completely different subject (I studied literature), I would have to go back to school to acquire all those credit hours. So in other words I would have to spend five years of my life working on getting another master’s degree that is of no use to me, just to have the opportunity to sit for the CPA exam. An exam that I’m completely certain I would eventually be able to pass, based on my experience with the CFA.
My story is not unique, but I just wish the AICPA could learn from the CFA Society and make the exam open to everyone that just has a bachelor’s degree. If the exam is hard enough (like the CFA exam), only the smartest people will pass it. Nobody ever accused the CFA designation of being cheap, just because there are no requirements to sit for the exam. I think the AICPA is losing out on talent because of this rule — talent that would invigorate the CPA designation.
First of all, as designations go, nothing matches the CPA in importance and recognition. Any company that’s looking to hire a CFO or higher-level finance person looks for that designation.
Second, my own story is that I’ve been working in accounting and finance for the last 10-plus years working with companies from $1 million-$75 million. I’ve done all the accounting, finance and management reporting and worked with investment bankers for M&A transactions. There was a time where I wanted to work more in private equity, so I studied for (and passed) the first two levels of the CFA exam, before acknowledging that it was not for me.
I would love to have a chance to obtain the CPA designation, but because my education was in another country and a completely different subject (I studied literature), I would have to go back to school to acquire all those credit hours. So in other words I would have to spend five years of my life working on getting another master’s degree that is of no use to me, just to have the opportunity to sit for the CPA exam. An exam that I’m completely certain I would eventually be able to pass, based on my experience with the CFA.
My story is not unique, but I just wish the AICPA could learn from the CFA Society and make the exam open to everyone that just has a bachelor’s degree. If the exam is hard enough (like the CFA exam), only the smartest people will pass it. Nobody ever accused the CFA designation of being cheap, just because there are no requirements to sit for the exam. I think the AICPA is losing out on talent because of this rule — talent that would invigorate the CPA designation.
An anonymous accountant
I just wanted to give you my two cents.
I was a young mother and late to the college game and career game. Even with all that, I eventually received my bachelor's. Then my career took another path that would put me in line with becoming a CPA and possibly future lifetime security for myself and my family.
I weighed my options and decided that the additional time to get my master’s to test for the CPA exam was going to be worth it.
I finished my master’s and began studying for the exam. I have now taken parts of the exam several times.
The issue is, now a full-time job, family and trying to study. But a kid right out of college who can live at home, with no bills and just study for the exam.
I barely have enough time for me, let alone,family, work, and study, ha! No way, now I have to work, instead of study.
I have since passed my exams for the Enrolled Agent, which in my industry allows me to do my job, but I can never own a CPA firm, take over my family business, or sign off on audits. I would have to pass the exam to do this, and it is not possible in my situation.
The exam is old and not specific to all the industries one might want to be in with the CPA license, like in my case, tax and audit. I will never need cost accounting and a lot of the other items tested. If these tests could be industry-specific maybe it would give me a chance.
Just a thought.
I was a young mother and late to the college game and career game. Even with all that, I eventually received my bachelor's. Then my career took another path that would put me in line with becoming a CPA and possibly future lifetime security for myself and my family.
I weighed my options and decided that the additional time to get my master’s to test for the CPA exam was going to be worth it.
I finished my master’s and began studying for the exam. I have now taken parts of the exam several times.
The issue is, now a full-time job, family and trying to study. But a kid right out of college who can live at home, with no bills and just study for the exam.
I barely have enough time for me, let alone,family, work, and study, ha! No way, now I have to work, instead of study.
I have since passed my exams for the Enrolled Agent, which in my industry allows me to do my job, but I can never own a CPA firm, take over my family business, or sign off on audits. I would have to pass the exam to do this, and it is not possible in my situation.
The exam is old and not specific to all the industries one might want to be in with the CPA license, like in my case, tax and audit. I will never need cost accounting and a lot of the other items tested. If these tests could be industry-specific maybe it would give me a chance.
Just a thought.
Henry Bauermeister, CPA (ret.)
I read your recent article about the difficulty firms are having recruiting and retaining accountants and that more are unwilling to seek a CPA certificate, and offer my thoughts on the subject.
As a retired CPA from the state of Indiana, I believe the requirement to have 150 hours to sit for the exam is inappropriate. Many of these hours have nothing to do with accounting and related area subjects. While I agree that the accounting world has changed a lot from when I took the exam in the mid-1960s, the fundamental concepts of accounting have not changed. What has changed are the techniques available to manage and record events with technological advances in point of sale transactions, inventory management, etc. This then drives the need for accountants to be more knowledgeable about how these systems are designed and work. Also, learning new ways to evaluate the effectiveness and accuracy of these new systems. I believe field experience is the best way to learn and one who stays in any field must continue to learn as the work environment changes. I believe the continuing education requirement goes a long way to further differentiate those who are real professionals.
My experience as one who did not enter public accounting, even though I had passed the CPA exam, is that specialization is often necessary to be successful. I ran several businesses and learned that general knowledge will only go so far in solving some problems. Frequently you need specialists to complete tasks. This in my mind is no different than in the medical field where there are general practitioners and specialists. Today there are physician assistants, freeing doctors to deal with the more difficult issues for patients. Why not pursue a similar model for accountants? CPAs for general practice and then advanced training levels for specialists. Perhaps an apprentice level classification (I think this is done in many firms) for those who want to gain field experience before taking the exam.
The ability to pass the exam is the objective. I suggest the requirements to take the exam return to the 120-hour requirement for exam eligibility. There is still the need for the candidate to have proficiency in the various areas of the exam, and with proper study and coaching I believe candidates can successfully pass the exam.
Upon passing the exam, successful candidates then are eligible to pursue careers in the various special disciplines required in the field, auditing, tax (which is often more the result of political decisions than accounting and often more requiring a legal than an accounting degree), management consulting, systems development, etc. Perhaps there is a way to recognize the achievement for different levels of proficiency achieved from continuing education.
The field needs more accountants of all types; why not lessen the burden to enter the field, but still require proficiency in passing the exam or achieving various specialty levels?
As a retired CPA from the state of Indiana, I believe the requirement to have 150 hours to sit for the exam is inappropriate. Many of these hours have nothing to do with accounting and related area subjects. While I agree that the accounting world has changed a lot from when I took the exam in the mid-1960s, the fundamental concepts of accounting have not changed. What has changed are the techniques available to manage and record events with technological advances in point of sale transactions, inventory management, etc. This then drives the need for accountants to be more knowledgeable about how these systems are designed and work. Also, learning new ways to evaluate the effectiveness and accuracy of these new systems. I believe field experience is the best way to learn and one who stays in any field must continue to learn as the work environment changes. I believe the continuing education requirement goes a long way to further differentiate those who are real professionals.
My experience as one who did not enter public accounting, even though I had passed the CPA exam, is that specialization is often necessary to be successful. I ran several businesses and learned that general knowledge will only go so far in solving some problems. Frequently you need specialists to complete tasks. This in my mind is no different than in the medical field where there are general practitioners and specialists. Today there are physician assistants, freeing doctors to deal with the more difficult issues for patients. Why not pursue a similar model for accountants? CPAs for general practice and then advanced training levels for specialists. Perhaps an apprentice level classification (I think this is done in many firms) for those who want to gain field experience before taking the exam.
The ability to pass the exam is the objective. I suggest the requirements to take the exam return to the 120-hour requirement for exam eligibility. There is still the need for the candidate to have proficiency in the various areas of the exam, and with proper study and coaching I believe candidates can successfully pass the exam.
Upon passing the exam, successful candidates then are eligible to pursue careers in the various special disciplines required in the field, auditing, tax (which is often more the result of political decisions than accounting and often more requiring a legal than an accounting degree), management consulting, systems development, etc. Perhaps there is a way to recognize the achievement for different levels of proficiency achieved from continuing education.
The field needs more accountants of all types; why not lessen the burden to enter the field, but still require proficiency in passing the exam or achieving various specialty levels?
An anonymous CPA candidate
I’m writing in response to your question “Is it too hard to become a CPA?”
The answer is yes, yes, many times yes. I am in the process of getting my CPA license. I passed the last part of the CPA exam this past May. I passed all four sections on my first try, with three scores over 90. Even though I have over a year of public accounting experience I won’t be able to get my license until sometime next year due to Oregon’s licensing process.
When I started studying for the CPA exam I had over 10 years of experience in private accounting in a variety of settings, including software, education and manufacturing, but I had never worked in public accounting. However, at every step along the way of this CPA journey I grappled with the thought, “I’m not cut out to be a CPA, this profession is not for me, they don’t want me.” There have been so many obstacles, including financial, logistical and the needlessly bureaucratic. Even now, I’m not 100% confident I will get licensed, because at almost every step along the way there has been some “gotcha” moment that sets me back again. While I understand the need to have a high bar for CPAs, many of the hoops we’re expected to jump through are needlessly complicated and feel downright mean-spirited, like a frat hazing process. Many times in the past year I found myself thinking, “It really doesn’t seem like they (the AICPA, state accounting boards) want people to become CPAs.” I’ve heard that sentiment echoed repeatedly by other folks going through the same process.
The only reason I’ve put myself through the gauntlet of becoming a CPA is that I don’t have a degree in accounting, and came to the conclusion that the CPA credential would be the best way for me to open doors in my career. I got a BA in liberal arts in 2001 and ended up discovering I’m really good at accounting and enjoy it. If I had a BA in accounting, or a higher degree in business or accounting, I probably wouldn’t bother. I am not alone in these sentiments. Along the way I’ve met many talented, hard-working, knowledgeable accounting professionals who see no point in going through the grueling process of getting credentialed. Some already have good, well-paying jobs and have no interest in working in public accounting, which is almost de facto required because of the experience requirement. Some are recent college grads, struggling with adjusting to working full time and are just too tired to prepare for the exam while working 50-60 hours in public accounting. Some are folks (mostly women) with family and caregiving commitments who do not have the time to prepare for four four-hour tests. One of the most experienced, talented tax preparers at a firm where I worked didn’t have her CPA. The reason was that she has a special needs child and she cannot work full time, care for her child and prepare for the exam. The many requirements of the process simply exclude a lot of otherwise talented, qualified people from the profession, especially people from lower-income backgrounds and underserved communities.
I think one of the problems with the licensing process as it currently stands is that there’s no one to advocate for the applicants. The folks who set the requirements at different levels don’t have to go through the entire process themselves, and so don’t know how the numerous requirements and fees add up to discourage potential applicants. All the different steps sound reasonable on paper, but collectively add up to a process much more onerous than intended. Part of this problem is the varying requirements of all the different state boards. It is not uncommon for an applicant to begin the process in one state and end up working and getting licensed in another, so you’ll think you’re done, only to have another requirement thrown at you.
For example, I took my required accounting courses in California, and tailored my course choices to that state’s requirements to sit for the exam. But then I moved to Washington, I wasn’t qualified to sit for the exam in Washington, so I sat under California. Now I’m still living in Washington but working remotely for an Oregon firm, so am pursuing licensure in Oregon. I think I’ve fulfilled the Oregon educational requirements (but won’t know for sure until I actually submit my application, since the requirements are vague) but now I have to write a 10-plus page essay giving detailed examples showing I possess all the competencies required for licensure, and have the then-supervisor sign off on each of the examples. With 10-plus years of accounting experience I have the examples, but the idea of tracking down supervisors I worked for years ago is daunting, to say the least. The simplest way is just to wait until I have examples from my current Oregon employer, which might take awhile. When I was working for a Washington firm and looking at Washington licensure, I was looking at having to take several more business classes, incurring even more time and expense. Also, it takes an unreasonable amount of time to wade through the bowels of the often poorly designed websites of the state boards, trying to find their specific requirements and processes. The language is often vague and unhelpful, so followup calls are often required, usually more than once while you try to find the one person who can answer your specific question. With a highly mobile workforce, more standardization would be extremely helpful.
The whole process is so frustrating that the other day I was tempted to apply for an assistant controller job in private industry that did not require a CPA that I was highly qualified for. It paid as much (if not more) than I’m making now, and I could be done with all this nonsensical bureaucracy. But I realize that at this point I’m so close it would really be silly to walk away. However, the fact that someone is strongly tempted to walk away this close to the end should tell you something about how frustrating and hard this process is.
Since I started the process to sit for the exams, I’ve spent hundreds of hours and thousands of dollars pursuing that goal. And that’s not even including time and expense required to fulfill the educational requirements. It’s a very expensive process, both in terms of time and money, and many people simply do not have the required resources to throw at it. Or people start the process and life gets in the way — sickness, family obligations, job commitments, etc., especially when you can make good money without the credential. I took a substantial pay cut last year to work in public accounting to fulfill the experience requirement — substantial enough that I qualified for the Earned Income Tax Credit! I worked harder and longer hours than I had in a long, long time and was having to pull money from my savings just to make ends meet. I really, really hope this credential is worth all the sacrifices I have made. But it is a grueling, bureaucratic nightmare of a process. Almost every mother I know, myself included, would rather go through childbirth again, maybe even more than once.
Some ways to make the process more bearable would be standardization of the process and requirements among the states, encouraging employers (and helping small employers) to give paid time off to study for and take the exams, and finding a way to help candidates financially with the cost of the fees and exam prep material. Another idea would be to eliminate or modify the requirement that all four sections must be passed within 18 months. I know candidates who passed one or two sections and then had to pause due to health or family issues beyond their control. When they realized they would have to start over they simply decided it wasn’t worth it.
The answer is yes, yes, many times yes. I am in the process of getting my CPA license. I passed the last part of the CPA exam this past May. I passed all four sections on my first try, with three scores over 90. Even though I have over a year of public accounting experience I won’t be able to get my license until sometime next year due to Oregon’s licensing process.
When I started studying for the CPA exam I had over 10 years of experience in private accounting in a variety of settings, including software, education and manufacturing, but I had never worked in public accounting. However, at every step along the way of this CPA journey I grappled with the thought, “I’m not cut out to be a CPA, this profession is not for me, they don’t want me.” There have been so many obstacles, including financial, logistical and the needlessly bureaucratic. Even now, I’m not 100% confident I will get licensed, because at almost every step along the way there has been some “gotcha” moment that sets me back again. While I understand the need to have a high bar for CPAs, many of the hoops we’re expected to jump through are needlessly complicated and feel downright mean-spirited, like a frat hazing process. Many times in the past year I found myself thinking, “It really doesn’t seem like they (the AICPA, state accounting boards) want people to become CPAs.” I’ve heard that sentiment echoed repeatedly by other folks going through the same process.
The only reason I’ve put myself through the gauntlet of becoming a CPA is that I don’t have a degree in accounting, and came to the conclusion that the CPA credential would be the best way for me to open doors in my career. I got a BA in liberal arts in 2001 and ended up discovering I’m really good at accounting and enjoy it. If I had a BA in accounting, or a higher degree in business or accounting, I probably wouldn’t bother. I am not alone in these sentiments. Along the way I’ve met many talented, hard-working, knowledgeable accounting professionals who see no point in going through the grueling process of getting credentialed. Some already have good, well-paying jobs and have no interest in working in public accounting, which is almost de facto required because of the experience requirement. Some are recent college grads, struggling with adjusting to working full time and are just too tired to prepare for the exam while working 50-60 hours in public accounting. Some are folks (mostly women) with family and caregiving commitments who do not have the time to prepare for four four-hour tests. One of the most experienced, talented tax preparers at a firm where I worked didn’t have her CPA. The reason was that she has a special needs child and she cannot work full time, care for her child and prepare for the exam. The many requirements of the process simply exclude a lot of otherwise talented, qualified people from the profession, especially people from lower-income backgrounds and underserved communities.
I think one of the problems with the licensing process as it currently stands is that there’s no one to advocate for the applicants. The folks who set the requirements at different levels don’t have to go through the entire process themselves, and so don’t know how the numerous requirements and fees add up to discourage potential applicants. All the different steps sound reasonable on paper, but collectively add up to a process much more onerous than intended. Part of this problem is the varying requirements of all the different state boards. It is not uncommon for an applicant to begin the process in one state and end up working and getting licensed in another, so you’ll think you’re done, only to have another requirement thrown at you.
For example, I took my required accounting courses in California, and tailored my course choices to that state’s requirements to sit for the exam. But then I moved to Washington, I wasn’t qualified to sit for the exam in Washington, so I sat under California. Now I’m still living in Washington but working remotely for an Oregon firm, so am pursuing licensure in Oregon. I think I’ve fulfilled the Oregon educational requirements (but won’t know for sure until I actually submit my application, since the requirements are vague) but now I have to write a 10-plus page essay giving detailed examples showing I possess all the competencies required for licensure, and have the then-supervisor sign off on each of the examples. With 10-plus years of accounting experience I have the examples, but the idea of tracking down supervisors I worked for years ago is daunting, to say the least. The simplest way is just to wait until I have examples from my current Oregon employer, which might take awhile. When I was working for a Washington firm and looking at Washington licensure, I was looking at having to take several more business classes, incurring even more time and expense. Also, it takes an unreasonable amount of time to wade through the bowels of the often poorly designed websites of the state boards, trying to find their specific requirements and processes. The language is often vague and unhelpful, so followup calls are often required, usually more than once while you try to find the one person who can answer your specific question. With a highly mobile workforce, more standardization would be extremely helpful.
The whole process is so frustrating that the other day I was tempted to apply for an assistant controller job in private industry that did not require a CPA that I was highly qualified for. It paid as much (if not more) than I’m making now, and I could be done with all this nonsensical bureaucracy. But I realize that at this point I’m so close it would really be silly to walk away. However, the fact that someone is strongly tempted to walk away this close to the end should tell you something about how frustrating and hard this process is.
Since I started the process to sit for the exams, I’ve spent hundreds of hours and thousands of dollars pursuing that goal. And that’s not even including time and expense required to fulfill the educational requirements. It’s a very expensive process, both in terms of time and money, and many people simply do not have the required resources to throw at it. Or people start the process and life gets in the way — sickness, family obligations, job commitments, etc., especially when you can make good money without the credential. I took a substantial pay cut last year to work in public accounting to fulfill the experience requirement — substantial enough that I qualified for the Earned Income Tax Credit! I worked harder and longer hours than I had in a long, long time and was having to pull money from my savings just to make ends meet. I really, really hope this credential is worth all the sacrifices I have made. But it is a grueling, bureaucratic nightmare of a process. Almost every mother I know, myself included, would rather go through childbirth again, maybe even more than once.
Some ways to make the process more bearable would be standardization of the process and requirements among the states, encouraging employers (and helping small employers) to give paid time off to study for and take the exams, and finding a way to help candidates financially with the cost of the fees and exam prep material. Another idea would be to eliminate or modify the requirement that all four sections must be passed within 18 months. I know candidates who passed one or two sections and then had to pause due to health or family issues beyond their control. When they realized they would have to start over they simply decided it wasn’t worth it.
Bill Cochran, CPA
I have a few thoughts.
You said: “I want to know your thoughts on whether it’s possible or desirable to make it easier to become a CPA”
The short answer is no.
Back in the day, I do not remember ever having the issues we have today.
But that was a different time. Now we have a whole new generation who expects that things should be easier for them. It does take a special person who sees the benefit of having a CPA license and to put in the commitment it takes to pass.
The same goes for the Top 10 hardest exams in the world. The CPA/CFA is in the Top Five.
Making any of these exams easier, means the market can be flooded with graduates. California made their bar exam so hard that people have taken it to court, but there are people who pass it.
I like having the demand.
The work will get done. The person I want to hire is the one who will do what it takes to become a CPA, as it stands now.
It takes a commitment from a firm to create a strategy that would attract candidates. There are people to hire out there but firms need to answer this question: Why would someone want to work for my firm?
Most firms, including mine, have not developed a strategy to attract good talent. Those that do, get the best candidates.
So our profession should bear some of the burden of these issues.
Catering to a generation that thinks life is “too hard” is not who I want to hire.
I was in the Navy for nine years before I started in the business.
My job in the Navy had a school. The exam to get out of that school should be in the Top 10. It’s not listed. Individuals who take four or five times to pass are top of their class in college. Most of them have nuclear engineering degrees with 4.0 grade point averages. It’s much harder to pass than the CPA exam.
But we pass.
Navy SEALS have a 90% attrition rate. Their motto? “Just don’t quit.”
A lot of people, both young and old, have a hard time not quitting. It’s just easier to quit.
So no, I do not want to make it easier.
You said: “I want to know your thoughts on whether it’s possible or desirable to make it easier to become a CPA”
The short answer is no.
Back in the day, I do not remember ever having the issues we have today.
But that was a different time. Now we have a whole new generation who expects that things should be easier for them. It does take a special person who sees the benefit of having a CPA license and to put in the commitment it takes to pass.
The same goes for the Top 10 hardest exams in the world. The CPA/CFA is in the Top Five.
Making any of these exams easier, means the market can be flooded with graduates. California made their bar exam so hard that people have taken it to court, but there are people who pass it.
I like having the demand.
The work will get done. The person I want to hire is the one who will do what it takes to become a CPA, as it stands now.
It takes a commitment from a firm to create a strategy that would attract candidates. There are people to hire out there but firms need to answer this question: Why would someone want to work for my firm?
Most firms, including mine, have not developed a strategy to attract good talent. Those that do, get the best candidates.
So our profession should bear some of the burden of these issues.
Catering to a generation that thinks life is “too hard” is not who I want to hire.
I was in the Navy for nine years before I started in the business.
My job in the Navy had a school. The exam to get out of that school should be in the Top 10. It’s not listed. Individuals who take four or five times to pass are top of their class in college. Most of them have nuclear engineering degrees with 4.0 grade point averages. It’s much harder to pass than the CPA exam.
But we pass.
Navy SEALS have a 90% attrition rate. Their motto? “Just don’t quit.”
A lot of people, both young and old, have a hard time not quitting. It’s just easier to quit.
So no, I do not want to make it easier.
Matt Bowen, CPA
I took and passed two sections right out of school and public accounting hours got in the way of me focusing to finish. Five years later I made it a priority and am glad that I passed. Nothing worth having in life should come easy. I think the test is hard, but that’s also why it has value, similar to passing the bar or making it through medical school.
Interestingly enough, I think the biggest problem is the work-life balance of finance, legal and medical professions. Because organizations value salesmen over finance, I would encourage my children to not pursue the accounting field, 80-100 work weeks will never be a badge of honor I wear proudly; most likely the work I did was inefficient and could have been done differently.
I think the problem is less the exam and more the profession and it’s unreasonable expectations from its staff.
Interestingly enough, I think the biggest problem is the work-life balance of finance, legal and medical professions. Because organizations value salesmen over finance, I would encourage my children to not pursue the accounting field, 80-100 work weeks will never be a badge of honor I wear proudly; most likely the work I did was inefficient and could have been done differently.
I think the problem is less the exam and more the profession and it’s unreasonable expectations from its staff.
Michael Marion, CPA, EA, CFP
I am glad someone finally published something about this issue.
I was at a seminar (I forget which seminar it was), shortly after they made the 150-credit hour change with one year experience. The presenters were extremely happy with the change, and I raised my hand to question it. I felt this change would stop some qualified individuals from pursuing the CPA certification and have less knowledgeable individuals obtain the CPA certification.
Who would you think would most likely have a better skill set in your firm? The CPA with 150 college credits and one year of experience or the CPA with 120 college credits and two years’ experience? I think we can all agree, most likely the CPA with two years’ experience would have the better skill set.
Yes, college is important. However, nothing can take away from on-the-job training. The new CPA format wants less on-the-job training and more college. It does not make sense to me. You are encouraging individuals to incur more student debt and getting less experience (one year instead of two years).
Reflecting on my career, I feel I was so much more comfortable and knowledgeable as a CPA in my second year compared to my first year. I think most CPAs would say the same thing about their own careers as well.
When I first heard the change, I thought it was ridiculous and now I see that I was right in my assumption after reading your article.
I was at a seminar (I forget which seminar it was), shortly after they made the 150-credit hour change with one year experience. The presenters were extremely happy with the change, and I raised my hand to question it. I felt this change would stop some qualified individuals from pursuing the CPA certification and have less knowledgeable individuals obtain the CPA certification.
- Student loan debt is a very real issue in this country. Asking a student to incur more debt to get the CPA certification will prevent qualified candidates from pursuing the certification. The individual may end up getting the Certified Management Accountant if they stay in corporate accounting or the Enrolled Agent if they want to focus on taxes. They would really need the CPA for audits. If they do not want to do audits, there are plenty of other certifications they can obtain. Their employer may end up paying for their master’s degree (making them eligible to take the CPA exam). How long will it take them to finish the degree? Will the individual be starting a family at that time? If so, now they have less time to devote to studying for the exam. Without the 150 credits, the individual could have studied and taken the exam prior to having a family.
- The current exam is challenging, but it needs to be challenging. The exam has helped the individual by allowing them to take one part at a time, instead of all four parts at the same time. This allows the individual to focus their time on one area and should help with the work-life balance and passing rates.
- Less knowledgeable individuals obtain their CPA. What do I mean by that? First, say an individual goes straight through college and gets the 150 credits and immediately after college passes the CPA exam (instead of getting a job right away). Then they work for your firm for one year. They would receive their CPA license.
Who would you think would most likely have a better skill set in your firm? The CPA with 150 college credits and one year of experience or the CPA with 120 college credits and two years’ experience? I think we can all agree, most likely the CPA with two years’ experience would have the better skill set.
Yes, college is important. However, nothing can take away from on-the-job training. The new CPA format wants less on-the-job training and more college. It does not make sense to me. You are encouraging individuals to incur more student debt and getting less experience (one year instead of two years).
Reflecting on my career, I feel I was so much more comfortable and knowledgeable as a CPA in my second year compared to my first year. I think most CPAs would say the same thing about their own careers as well.
When I first heard the change, I thought it was ridiculous and now I see that I was right in my assumption after reading your article.
Stephen L. Lucas, CPA
One additional year of school to become a CPA — why would anyone do that if they had any doubts of wanting a career in public accounting? The year has no value except for the certificate. I seem to remember it was to make CPAs more well-rounded. I don’t think an additional year of college makes us more personable.
Jay Kianka, CPA
My only comment is to strongly agree with the fifth-year requirement having a big influence on this.
I strongly objected to the AICPA when this was being considered. In fact I quit the AICPA because of their decision.
A fifth year of classes only benefited the colleges and universities!
If there were to be a fifth year, it should have consisted of only paid internships for the students, but this could even be incorporated in their fourth year.
I strongly objected to the AICPA when this was being considered. In fact I quit the AICPA because of their decision.
A fifth year of classes only benefited the colleges and universities!
If there were to be a fifth year, it should have consisted of only paid internships for the students, but this could even be incorporated in their fourth year.
Linda Biek, CPA
Thank you for pondering this point. I’ve questioned the need for 150 hours for more than 20 years and have been given a variety of answers. Claims that the extra hours would be for soft skills, increased business classes, etc., just seem to be hollow reasons without support. Did anyone ever perform post-implementation analysis to determine whether the goals were achieved? ....
As a regulator, I’m not entirely comfortable with the thought of making it “easier” to become a CPA as we have to serve the public when dealing with complex financial matters. Competency is key. However, I would advocate for more research to determine whether there truly is a need for 150 hours of education to become a CPA. Actually, I would advocate for continued research about various aspects of the CPA licensure process from different perspectives — students, public, international bodies, etc.
As a regulator, I’m not entirely comfortable with the thought of making it “easier” to become a CPA as we have to serve the public when dealing with complex financial matters. Competency is key. However, I would advocate for more research to determine whether there truly is a need for 150 hours of education to become a CPA. Actually, I would advocate for continued research about various aspects of the CPA licensure process from different perspectives — students, public, international bodies, etc.
Philip Russell, CPA
It should always be hard to be a CPA.
Otherwise it does not mean anything if you achieve it, if it is too watered down.
The profession should encourage more women and minorities to become CPAs.
There should be more outreach.
Otherwise it does not mean anything if you achieve it, if it is too watered down.
The profession should encourage more women and minorities to become CPAs.
There should be more outreach.
Jonathan Weisz, CPA
My thoughts are as follows. I preface them by saying I feel a bit guilty about them but my feeling is that I spent so much time and money to get my CPA license that I feel it is unfair to give the young and new students an easy ride that I wasn't entitled to. Also, if the goal of the exam difficulty and additional schooling is to keep the profession at a high level, then I feel we should keep it that way. It wasn't easy for me but I did it (and did it with three young kids at home and a full-time job). I hope people wouldn't give up that easy and would push through it for the benefits that the license brings.
Randy Philpot, CPA
I've been a CPA for 35 years or so. Practiced in public accounting for 30 years. It's a noble profession. Let's not dumb down this credential. I know the skill set may be changing, but it remains a technical profession and probably always will.
Danielle Cagno, CPA
My vote would be to extend the length of time to complete the four parts to 24 months. Most of our young professionals have a busy season where they have to put studying on hold, so that eats up precious time necessary to pass. We just had someone in our office that did not make the 18 months and has to start all over again. That is discouraging.
Also, back in the day (I passed in 1991), they used to release the prior exams and you could use them to study from. Now they don’t and it just makes it harder, putting these young professionals at a disadvantage especially with the simulations. I’m watching my daughter go though this now and it’s unbelievably stressful.
I vote for change!
Also, back in the day (I passed in 1991), they used to release the prior exams and you could use them to study from. Now they don’t and it just makes it harder, putting these young professionals at a disadvantage especially with the simulations. I’m watching my daughter go though this now and it’s unbelievably stressful.
I vote for change!
Tandra C. Lanier
In response to the main question posed in the article of whether "It's too hard to become a CPA" I'd like to offer some of the questions I myself have regarding the CPA exam and licensure. This may provide some insight as to what people are thinking regarding becoming a CPA.
I'm currently working at a Big Four firm as a senior associate in compliance but started this path later in life (1980s baby) after being a personal caterer for a number of years. I made this move because I worked as a tax preparer for the commercial franchises (HR Block, Jackson Hewitt, etc.) and always thought that would be a good career for me and found the work interesting. I finished my bachelor's in 2016, received an offer from the firm to work that October, and have been there since. Initially, I didn't think I'd stay, because I wasn't interested in obtaining CPA status. After five years though, most people in my position are up for a promotion that would require having your CPA license. I was asked to consider taking the exam, and found that I still have the same questions five years later that I had when I graduated:
I'm currently working at a Big Four firm as a senior associate in compliance but started this path later in life (1980s baby) after being a personal caterer for a number of years. I made this move because I worked as a tax preparer for the commercial franchises (HR Block, Jackson Hewitt, etc.) and always thought that would be a good career for me and found the work interesting. I finished my bachelor's in 2016, received an offer from the firm to work that October, and have been there since. Initially, I didn't think I'd stay, because I wasn't interested in obtaining CPA status. After five years though, most people in my position are up for a promotion that would require having your CPA license. I was asked to consider taking the exam, and found that I still have the same questions five years later that I had when I graduated:
- Why is it so expensive? Fees to have your credits reviewed, fees to register, to sit, each part costing anywhere between $150-$300 depending on the state. I imagine it's meant to weed out those who aren't serious, but I think it is too cost-prohibitive if a majority of people end up having to take a part more than once. Some employers are willing to reimburse you for a set of fees, but that doesn't help if you aren't employed, or end up having to retake a section more than once. Why not be $50-$100 every time you sit for a part, then once you've passed, you pay a final fee to lock that section down?
- Is studying fruitful and why are the review courses so expensive? Studying without the aid of the review courses (Becker, Wiley, Roger, etc.) can be non-productive. It's a ton of information to sort through and likely unhelpful in preparing you to pass an exam for most. If you choose to use the review courses, those are also expensive and might prove to be wasted money if you still fail an exam after studying through the course. Again, some employers will reimburse you for the cost, but that is after you are employed and you now have to balance working and preparing for exams.
- 18 month rule. Those who were unable to pass all four parts after graduating and prior to starting employment now have to balance studying, working, and life in general once they've passed a section of the exam. While some people can plan for this and adjust the timing of things, the vast majority of people don't have that option and usually need to work after graduating. If you cannot pass in the 18-month time frame, you are out a substantial amount of money, time and effort. This is exacerbated by the high cost of the sections, since now you must pay to retake a section that you have already completed.
Cara Turner, CPA
I graduated from the University of Denver with my MT in 1997, worked at KPMG Denver until 2003 when my husband (also a CPA who became a banker) and I relocated to a small mountain town. I have owned my own tax practice since 2009. My feeling is that CPAs are extremely intelligent and work very hard — this is the rule with few exceptions in my experience. The pay is not commensurate with the knowledge and work required. The younger generation who is more interested in life balance has likely come to this conclusion. I have observed my husband, who went into commercial banking about 17 years ago, easily makes more money than me with less effort (much less working hours) — because he is not selling his time — he is literally selling money (loans). The wages and rates for CPAs need to increase. In general, CPAs tend to be very fair individuals, to the extreme of undervaluing ourselves. I have seen the demand for CPA services increase significantly in my area with the supply limited. I myself think I am too fair and worry about billing too much- undervaluing my own services. This is the issue I see and intend to work on.
Jon Fein
In my experience, the exam took up untold hours to prepare for, looking for the most obscure questions that the board could manufacture. I believe in eliminating the exam in favor of course training much like an MBA. The methods of study would be classroom as well as real-world training with a CPA office. This gives the CPA companies much needed labor and a way to mold the students to the proper techniques of the job. It would be a co-op that many engineering schools do. Upon graduation, having successfully completed the coursework and hands on experience, you will have earned your CPA. The CPA exam, in my opinion, tests you for what you don’t know instead of what you do know.
An anonymous MBA
As the COO of a small accounting firm who works with taxes and complex government accounting records, I have contemplated (many times) getting my CPA license. The daunting task of trying to find the time to study and take exams, coupled with running a successful accounting firm, has made me take pause. The title of “CPA” is more a title of perseverance than of actual knowledge. I am by no means implying that a person with a CPA license lacks intellect or drive; clearly both qualities are needed to pass this grueling test. However, as a society we have put too much weight on these three letters.
I contemplate the CPA title for prosperity and marketing; I do not believe it will make me a better accountant. There are qualities I look for when hiring, and [being a] CPA is not at the top. I look for people who are conscientious, have attention to detail, drive, and commitment to the job and client. These qualities are inherent and not measurable in any exam.
If the CPA license did not require months of learning and test taken, I would take the exam, so I could add CPA to my signature line and although I don’t like it, give prospective clients the “security” that a CPA is doing their taxes.
I contemplate the CPA title for prosperity and marketing; I do not believe it will make me a better accountant. There are qualities I look for when hiring, and [being a] CPA is not at the top. I look for people who are conscientious, have attention to detail, drive, and commitment to the job and client. These qualities are inherent and not measurable in any exam.
If the CPA license did not require months of learning and test taken, I would take the exam, so I could add CPA to my signature line and although I don’t like it, give prospective clients the “security” that a CPA is doing their taxes.
Lawrence Siminski, CPA (ret.)
Do we have enough Certified Public Accountants? Do we reduce the standards to get more?
I was a CPA first as an auditor of major corporations. Prior to that I was a quality engineer, the first group to be recognized in California, while working as an inspector in a nuclear power plant under construction. I was part of the initial peer review creation for the State of Washington. And a few years on the Board of Directors. A professor at the local University. My real job was running a firm of eight people doing mostly tax returns and consulting.
What is a CPA? I think a CPA is a constant pain in ass who always insists that life’s transactions be separated into definable entities. Not the human who owns it, but the business, charity, corporation, government or myriad of possible entities we create. ...
The public thinks a CPA is a taxman who prepares mandatory compliance to stay out of jail. There is a lot more money made keeping people out of jail, especially if the law to comply with is complex. I jokingly referred to it as not “rocket science” when talking to a new client. And he responded that he was actually a real rocket scientist, and that job was to defy the laws of gravity. But they never change the laws of gravity, and they always change the tax law, and that was why he was here; it is more difficult that rocket science. The point.
One of the big concerns of the board when I was there was the proposed increase in standards, from a four-year degree to a master’s degree. What became understood was that the CPAs are on the far right side of the bell-shaped curve; say, only 12% are able to meet the four-year standard, and to increase the standard just a little would decrease the number who could by half or more. The conundrum was the public’s interest. Having people who could do all that was expected, and only a third of the people needed. Or more people available who often could not do what was expected.
The solution is to reduce the standard and depend on the CPA to self-regulate what they do for a client, with declared specialization. This works very well when there is plenty of work in the specialty. In fact, I never met a person who met all that is expected. Actually not even half. The problem with ignorance is that it is worst when you don’t know that you don’t know. And the client is most at risk also. My idea of peer review was that review by a peer would reveal an ignorance that would be enthusiastically self-corrected. In the first years, the person in charge of the program lamented that only 70% responded positively. I thought that was very good, as it prevented problems, and left discipline to government only for harm after that fact. This is not a shared perspective and was subsequently bastardized by lazy government.
All this is to say that we need about 200,000 constant pain in asses with master’s degrees and high standards. And 700,000 if we have a complex tax system like we have now. How complex is the system?
One company reported that there were 10,000 tax compliance entities in the United States. I could not even begin to identify them, let alone know what those rules were. In the olden days, the IRS would answer tax compliance questions on the phone, only for simple individual tax rules, not business. The director of the IRS was called to task in Congress when a formal study revealed that the answers given were wrong 36% of the time. The director disagreed with the study, and said their own internal study showed that it was 32% errors. (Yes, they laughed at the distinction).
With technology we could save $300 billion every year by reducing the tax system to just 10 that are most efficient, and distributing the collected funds, kind like Visa does for banks. This is too much to discuss here, but to make the point that 500,000 people do not need to be employed in the very problematic tax system we have today. Do we need standards for this part of the work? ...
When I got into the profession, we had to spend two years in the [CPA firm] to be indoctrinated and imbued with the culture of standards of the profession. And only then called a professional by the community. Again government bastardized the concept as a license to make money. A CPA test for knowledge is a basis for licensing. A profession requires judgement, discernment, ethics, commitment to standards. If there is no monastery in which to live the standards, how else will it be learned? How else will we know who has professed to this standard? Our problem is to know what we are. And only then to structure to achieve it. Technology is our future. Implemented by adherence to professional standards.
I was a CPA first as an auditor of major corporations. Prior to that I was a quality engineer, the first group to be recognized in California, while working as an inspector in a nuclear power plant under construction. I was part of the initial peer review creation for the State of Washington. And a few years on the Board of Directors. A professor at the local University. My real job was running a firm of eight people doing mostly tax returns and consulting.
What is a CPA? I think a CPA is a constant pain in ass who always insists that life’s transactions be separated into definable entities. Not the human who owns it, but the business, charity, corporation, government or myriad of possible entities we create. ...
The public thinks a CPA is a taxman who prepares mandatory compliance to stay out of jail. There is a lot more money made keeping people out of jail, especially if the law to comply with is complex. I jokingly referred to it as not “rocket science” when talking to a new client. And he responded that he was actually a real rocket scientist, and that job was to defy the laws of gravity. But they never change the laws of gravity, and they always change the tax law, and that was why he was here; it is more difficult that rocket science. The point.
One of the big concerns of the board when I was there was the proposed increase in standards, from a four-year degree to a master’s degree. What became understood was that the CPAs are on the far right side of the bell-shaped curve; say, only 12% are able to meet the four-year standard, and to increase the standard just a little would decrease the number who could by half or more. The conundrum was the public’s interest. Having people who could do all that was expected, and only a third of the people needed. Or more people available who often could not do what was expected.
The solution is to reduce the standard and depend on the CPA to self-regulate what they do for a client, with declared specialization. This works very well when there is plenty of work in the specialty. In fact, I never met a person who met all that is expected. Actually not even half. The problem with ignorance is that it is worst when you don’t know that you don’t know. And the client is most at risk also. My idea of peer review was that review by a peer would reveal an ignorance that would be enthusiastically self-corrected. In the first years, the person in charge of the program lamented that only 70% responded positively. I thought that was very good, as it prevented problems, and left discipline to government only for harm after that fact. This is not a shared perspective and was subsequently bastardized by lazy government.
All this is to say that we need about 200,000 constant pain in asses with master’s degrees and high standards. And 700,000 if we have a complex tax system like we have now. How complex is the system?
One company reported that there were 10,000 tax compliance entities in the United States. I could not even begin to identify them, let alone know what those rules were. In the olden days, the IRS would answer tax compliance questions on the phone, only for simple individual tax rules, not business. The director of the IRS was called to task in Congress when a formal study revealed that the answers given were wrong 36% of the time. The director disagreed with the study, and said their own internal study showed that it was 32% errors. (Yes, they laughed at the distinction).
With technology we could save $300 billion every year by reducing the tax system to just 10 that are most efficient, and distributing the collected funds, kind like Visa does for banks. This is too much to discuss here, but to make the point that 500,000 people do not need to be employed in the very problematic tax system we have today. Do we need standards for this part of the work? ...
When I got into the profession, we had to spend two years in the [CPA firm] to be indoctrinated and imbued with the culture of standards of the profession. And only then called a professional by the community. Again government bastardized the concept as a license to make money. A CPA test for knowledge is a basis for licensing. A profession requires judgement, discernment, ethics, commitment to standards. If there is no monastery in which to live the standards, how else will it be learned? How else will we know who has professed to this standard? Our problem is to know what we are. And only then to structure to achieve it. Technology is our future. Implemented by adherence to professional standards.
Don Weber, CPA
The fifth year requirement was a mistake.
Ben Umeadi
If you want more CPAs, the industry needs to make the salary attractive enough to justify the gruelling academics.
IT, law, medicine, pharmacy are very demanding areas of study but they delight in admirable entry-level pay.
I finished my career, 30 years in treasury management. The only reason I did not pursue a CPA certification is because it will not yield more money for me. "Prestige does not pay bills."
IT, law, medicine, pharmacy are very demanding areas of study but they delight in admirable entry-level pay.
I finished my career, 30 years in treasury management. The only reason I did not pursue a CPA certification is because it will not yield more money for me. "Prestige does not pay bills."
John D. Briggs, CPA
I personally don’t think it’s too hard. I think the problem is the Big Four and most other accounting firms that follow the Big Four “traditional” model treat employees like something that just needs to be squeezed until there is no more juice. And with social media and other platforms like Glassdoor, potential accountants can see comments from employees about how terrible it is. It just doesn’t look appealing. It is a challenge to get a CPA and I think they compare the challenge to what they are seeing it would be worth, and they are choosing anything other than becoming a CPA.
Randy Flisak, CPA
1. Reduce the 150 requirement back to a four-year BS in accounting.
2. CPA exam: Continue with format, however reduce question/scenario content; increase clock time to answer questions/scenarios; breadth and depth of exam should be lessened; work experience in the accounting, finance, business, and teaching, should count towards exam credit.
2. CPA exam: Continue with format, however reduce question/scenario content; increase clock time to answer questions/scenarios; breadth and depth of exam should be lessened; work experience in the accounting, finance, business, and teaching, should count towards exam credit.
Thomas A. Clark CPA
My opinion is yes, it is too hard. I have been a practicing CPA for over 30 years and retired in 2019. It has been a great career. However the newer requirements, especially the 150-hour requirement, are excessive.
Newer grads have many options available at the normal four-year degree level and particularly with an advanced (master’s) degree. I have found that after the four-year degree, experience, especially at a CPA firm, provides a better working background then an additional year of college.
Just my humble opinion. The more varied working experience the better.
Newer grads have many options available at the normal four-year degree level and particularly with an advanced (master’s) degree. I have found that after the four-year degree, experience, especially at a CPA firm, provides a better working background then an additional year of college.
Just my humble opinion. The more varied working experience the better.
Judith D. Sherling, CPA
As a currently licensed CPA, I did not come up through the public accounting path. I was a senior financial analyst for a publicly held company. When my daughter graduated high school I went back to school and got my accounting degree. Then (as I traveled a grueling 120 nights away from home every year) I studied for the CPA exam. I took it before I was ready to get grandfathered in with my four-year degree before the 150-hour rule was implemented. I then went back and passed the exam. I worked for 13 years as a controller and then set up my own business management consultant firm. My first big client: the Bill and Melinda Gates Foundation. I put my CPA license to good use and I was so incredibly proud to have passed it at the age of 50 which is a daunting task.
That said … .
That said … .
- CPA “Boot Camp” with these public accounting firms is no longer filling the need. I am not in favor of lowering the standards. A master’s degree in these complex financial times is well worth it. In Georgia, we used to have to wait five years while working under a licensed CPA if we were not in public accounting. That was changed to one year. That is very helpful.
- Public accounting firms are only interested in recent young college graduates. I think they need to widen their recruiting efforts to non-traditional students. Surely there is a career path for them as well. And many accounting students like getting that public accounting experience before moving on to more lucrative jobs with big corporate players. It really lends even more credibility to their experience profile.
- If you compare how we used to sit for the exam — two days, two sections each day, all done in person – it seems to me that at least the test-taking environment has improved.
- There definitely needs to be support for student loan debt forgiveness when you sign on to a firm. There needs to be support for those CPAs who took an industry path. In addition, form scholarship committees within your firm and provide as much financial support as you can.
- If we still have enough doctors to keep most of us alive and they have a 12-year timeline at a minimum to begin their careers, surely we can find people who will make a five- or six-year commitment. But the supply and demand equation must also be at work when establishing salaries.
Robert Lukey, CPA, EA
I'm an EA and a CPA ... and I'm thrilled that you've hit on this topic on your Editor's Desk page.
I have a partner who does not have a bachelor’s degree but passed the RTRP test before the program was canceled. Our office does tax prep and bookkeeping. My partner can/will get their EA because they need to pass a test after studying for that test and will be able to do IRS representation. They have an associate’s degree in an unrelated field but it set them up to be able to be a qualified candidate for my office and they were given the partnership after a number of years of dedicated service. This is the background to my comments.
Comments:
The additional year of schooling does not make one a better candidate to be a CPA — and I feel discourages many — my partner being one since our office does no other accounting work than, if you want to call it accounting, bookkeeping. One of my mentors told a story a few years back: They were looking for a new employee at an office they had recently bought. They went to the local campuses and asked if they had any candidates that could be interviewed. After a number of interviews they called the placement office and told them that none of the "accounting" candidates they were sending had the qualifications needed, which was using Quickbooks and preparing related financial statements. I know from my own schooling that once I got past Accounting 101 and 102, the classes stopped teaching how to do basic bookkeeping and taught me how to do everything else. To this day I do not use everything else. To me the "CPA" is not an accountant in the old school way anymore. They are groomed to do anything but basic accounting. It’s no wonder that the current students are discouraged from getting the "CPA" letters as it, in many ways, does not apply to what they want to do. Add to the additional costs which increase student loans and I get the “Why bother?” mentality.
I have a partner who does not have a bachelor’s degree but passed the RTRP test before the program was canceled. Our office does tax prep and bookkeeping. My partner can/will get their EA because they need to pass a test after studying for that test and will be able to do IRS representation. They have an associate’s degree in an unrelated field but it set them up to be able to be a qualified candidate for my office and they were given the partnership after a number of years of dedicated service. This is the background to my comments.
Comments:
The additional year of schooling does not make one a better candidate to be a CPA — and I feel discourages many — my partner being one since our office does no other accounting work than, if you want to call it accounting, bookkeeping. One of my mentors told a story a few years back: They were looking for a new employee at an office they had recently bought. They went to the local campuses and asked if they had any candidates that could be interviewed. After a number of interviews they called the placement office and told them that none of the "accounting" candidates they were sending had the qualifications needed, which was using Quickbooks and preparing related financial statements. I know from my own schooling that once I got past Accounting 101 and 102, the classes stopped teaching how to do basic bookkeeping and taught me how to do everything else. To this day I do not use everything else. To me the "CPA" is not an accountant in the old school way anymore. They are groomed to do anything but basic accounting. It’s no wonder that the current students are discouraged from getting the "CPA" letters as it, in many ways, does not apply to what they want to do. Add to the additional costs which increase student loans and I get the “Why bother?” mentality.
Marcel V. Kuper, CPA
Easier to become a CPA? I really do not like that terminology. How about more user-friendly?
I am a practicing CPA for the last 42 years. I am 73 years old. It took me three tries to make the cut. (It so happens “My Cousin Vinny” is one of my favorite movies.)
1. I made a mistake in voting for the 150-credit requirement. I won't get into why I voted that way in the first place. One hundred and twenty hours should suffice.
2. When I took the exam there were four parts: Practice, Tax, Theory and Law. Two and a half days. Though I can not give birth, I do agree with Kimberly.
I am totally unaware of the test's present format. It would be ridiculous for me to comment on such.
However, as far as tax is concerned, my college professor taught me, "The tax law is constantly changing. A good tax person doesn't have to know the answer — they must know where to find it."
No questions on fund accounting — never used it in my life.
I am a practicing CPA for the last 42 years. I am 73 years old. It took me three tries to make the cut. (It so happens “My Cousin Vinny” is one of my favorite movies.)
1. I made a mistake in voting for the 150-credit requirement. I won't get into why I voted that way in the first place. One hundred and twenty hours should suffice.
2. When I took the exam there were four parts: Practice, Tax, Theory and Law. Two and a half days. Though I can not give birth, I do agree with Kimberly.
I am totally unaware of the test's present format. It would be ridiculous for me to comment on such.
However, as far as tax is concerned, my college professor taught me, "The tax law is constantly changing. A good tax person doesn't have to know the answer — they must know where to find it."
No questions on fund accounting — never used it in my life.
Douglas Harris, CPA, MST
The title of CPA is well earned. Unlike lawyers, there actually is an apprenticeship work requirement to get a license. Plumbers, electricians, etc., all have apprenticeships and tests. Consequently, there is a glut of lawyers in this country and their ranks include many who cannot find a job in their profession because there are simply too many of them.
Dumbing down the requirements is silly. There are shortages of skilled tradespeople. Do you see them dumbing down the requirements? Of course not. They are out there actively recruiting. Building codes require a licensed professional and the result is a shortage which has kicked up income.
Certified audits require a licensed CPA to sign off.
In the tax field, CPAs have certain privileges not accorded other tax preparers.
Consequently, wages have risen for qualified CPAs.
In my career, I have chosen to be self-employed as a CPA. I was in law school, but decided that it was a poor investment. In collaboration with other CPA firms, I still conduct certified audits, plus since I have an MST, I have specialized in international business and inter-state income tax. Also, I periodically conduct transfer pricing studies.
I'm 73 now, still work every day with employees in several businesses that I own, although not necessarily daily in the accounting or tax fields, but I enjoy the challenge offered in those fields as well as the handsome remuneration that they afford.
By the way, I taught college for eight years and was the director of the business school of a small Midwestern college in the 1970s. I was not a hardass by any means, but in my teaching career both there and at three other colleges, the failure rate in the introductory classes was never less than 50%. Why? Because people simply do not apply themselves. They managed to get a primary and secondary education by teachers holding their hand and not enforcing parameters with consequences. Sort of like being a bad parent. These kids got to college and expected the same treatment. I always felt that the bell curve was ridiculous. At the time I was teaching, I had a business partner, seven businesses, and about 125 employees outside of the college. I graded the same way as I would expect an employee to work. Do the work well, you get an A. Don't do the work, you get an F. You're fired. Surprisingly, the students understood and accepted that. ...
As you may have surmised, I am not a team player, unless I am the team captain. I recognize that CPA firms need team players, and there certainly are plenty of people out there who are. And they do quite well if they can function in that environment. The challenges in the field can be surprisingly gratifying also.
Dumbing down the requirements is silly. There are shortages of skilled tradespeople. Do you see them dumbing down the requirements? Of course not. They are out there actively recruiting. Building codes require a licensed professional and the result is a shortage which has kicked up income.
Certified audits require a licensed CPA to sign off.
In the tax field, CPAs have certain privileges not accorded other tax preparers.
Consequently, wages have risen for qualified CPAs.
In my career, I have chosen to be self-employed as a CPA. I was in law school, but decided that it was a poor investment. In collaboration with other CPA firms, I still conduct certified audits, plus since I have an MST, I have specialized in international business and inter-state income tax. Also, I periodically conduct transfer pricing studies.
I'm 73 now, still work every day with employees in several businesses that I own, although not necessarily daily in the accounting or tax fields, but I enjoy the challenge offered in those fields as well as the handsome remuneration that they afford.
By the way, I taught college for eight years and was the director of the business school of a small Midwestern college in the 1970s. I was not a hardass by any means, but in my teaching career both there and at three other colleges, the failure rate in the introductory classes was never less than 50%. Why? Because people simply do not apply themselves. They managed to get a primary and secondary education by teachers holding their hand and not enforcing parameters with consequences. Sort of like being a bad parent. These kids got to college and expected the same treatment. I always felt that the bell curve was ridiculous. At the time I was teaching, I had a business partner, seven businesses, and about 125 employees outside of the college. I graded the same way as I would expect an employee to work. Do the work well, you get an A. Don't do the work, you get an F. You're fired. Surprisingly, the students understood and accepted that. ...
As you may have surmised, I am not a team player, unless I am the team captain. I recognize that CPA firms need team players, and there certainly are plenty of people out there who are. And they do quite well if they can function in that environment. The challenges in the field can be surprisingly gratifying also.
Patricia Zdroik, CPA
Yes.
The extra year of education is a waste and unnecessary. Some fools thought that up to make themselves more exclusive.
And yes, the exam is too hard. It was very hard 30 years ago when I took it and from what I have read I think it is harder now.
I would like to know what the passing rate is now and what it was in prior years.
The extra year of education is a waste and unnecessary. Some fools thought that up to make themselves more exclusive.
And yes, the exam is too hard. It was very hard 30 years ago when I took it and from what I have read I think it is harder now.
I would like to know what the passing rate is now and what it was in prior years.
Deanna Fischer, an aspiring CPA
I was given the article “Is it hard to become a CPA?” by a colleague after I recently expressed interest again in pursuing the CPA license/exam.
It is true that after four long years of school and with the student loan piling up, I chose not to pursue the CPA exam in 2009
when I completed my accounting degree. I would still have seven classes to achieve (at least a year’s worth of classes) and wanted to spend more time with my two-year-old girl. Now she is in high school, and after hearing that the credit requirements were lowered from 150 to 125 (for Missouri, at least), I have decided to study and sit for the exam, which hopefully will be complete by December 2022, if all goes well.
The only things that made me hesitate to sit for the exam was the cost of the review courses and the cost of the four sections of the exam. However, after going back and forth about the cost, it will be worth it in the end with being able to make a higher salary.
It is true that after four long years of school and with the student loan piling up, I chose not to pursue the CPA exam in 2009
when I completed my accounting degree. I would still have seven classes to achieve (at least a year’s worth of classes) and wanted to spend more time with my two-year-old girl. Now she is in high school, and after hearing that the credit requirements were lowered from 150 to 125 (for Missouri, at least), I have decided to study and sit for the exam, which hopefully will be complete by December 2022, if all goes well.
The only things that made me hesitate to sit for the exam was the cost of the review courses and the cost of the four sections of the exam. However, after going back and forth about the cost, it will be worth it in the end with being able to make a higher salary.
James Salvato, EA
You were asking about how hard it is to become a CPA today. Honestly, I think it is extremely hard. Let me tell you my story. Before the Great Recession, I was working dead-end retail jobs that weren’t going anywhere. … [After taking out student loans to attend college at night,] I got my bachelor’s degree in business administration. I figured if I had a business degree, I would be more versatile in what I want to do, whether it be marketing, accounting, finance, etc. At the time, the requirements for the CPA exam were not as strict. … I finally got my MBA in accounting. I met all the requirements to take the CPA exam. I went the MBA route because it offered the CPA exam courses built into the degree instead of going the master’s in accounting route. … I would finally be able to get the coveted CPA designation and be a legitimate productive member of society! Victory was so close I could almost touch it!
I took the CPA exams; all four of them. I submitted my paperwork to the Illinois Board of Examiners. I waited … and waited … and waited. The time frame was up and I still hadn’t received any of my scores, but why? I called up the Board of Examiners and they told me that they never received certified copies of the transcripts from my school. Because of this, even if I passed, my scores would have been invalidated. I spent all this money for literally nothing! I have to do the whole thing all over again! I called my school, they tell me that there is a balance due of $2,000 that somehow my student loans didn’t cover and I need to pay that before they would send the transcripts out. After months of negotiations, the school settled the debt in exchange for not disparaging them in public. Fine. For all these years I kept my mouth quiet. I never told a soul about any of this … until now.
I never retook the CPA exam. I was too poor to do so. … I was doing a lot of reflecting. Would pursuing the coveted CPA title really be beneficial? Isn’t there an easier way? …
During this time, I was studying for the Enrolled Agent exam. … I took a three-part multiple-choice exam that dealt exclusively with taxes and tax situations. I feel any CPA, if they were to take this exam, would be overwhelmed by the amount of material it covers. Unlike the CPA exam, I got my scores immediately. Unlike the CPA exam, I didn’t have an educational requirement to take the exam … . Unlike the CPA exam, I didn’t have a work requirement beforehand to get the designation. Unlike the CPA exam, the exams themselves were significantly cheaper to take. …
Right now, I’m still self-employed. I don’t think I can work for someone else anymore. I outsource my bookkeeping work to other firms. I pay them, and charge a premium on my end to the client. If anyone needs an audit, review or compilation, I have colleagues who are CPAs that I can refer that matter to. …
Traditional accounting firms hire you and they expect you to not only know how to do the work but how their systems work, too. Just get the work done. Don’t think. Don’t ask questions. Just do it and do it right. I don’t have to worry about office systems. I have my own. I have my own way of doing things and get it done on my time and if someone doesn’t respect my time, they can pound sand. I can be a successful “tax professional.” I don’t have to sacrifice my time with my family. I can take my daughter to soccer practice and my sons to karate. I can go to the dentist and the doctor without having to make up hours. I can do all this from the comfort of my home.
The CPA profession needs major reform. The onerous hoops and hurdles one goes through to get that coveted title are generally only attainable by those who are privileged in the first place and not always necessarily from an educational standpoint.
I took the CPA exams; all four of them. I submitted my paperwork to the Illinois Board of Examiners. I waited … and waited … and waited. The time frame was up and I still hadn’t received any of my scores, but why? I called up the Board of Examiners and they told me that they never received certified copies of the transcripts from my school. Because of this, even if I passed, my scores would have been invalidated. I spent all this money for literally nothing! I have to do the whole thing all over again! I called my school, they tell me that there is a balance due of $2,000 that somehow my student loans didn’t cover and I need to pay that before they would send the transcripts out. After months of negotiations, the school settled the debt in exchange for not disparaging them in public. Fine. For all these years I kept my mouth quiet. I never told a soul about any of this … until now.
I never retook the CPA exam. I was too poor to do so. … I was doing a lot of reflecting. Would pursuing the coveted CPA title really be beneficial? Isn’t there an easier way? …
During this time, I was studying for the Enrolled Agent exam. … I took a three-part multiple-choice exam that dealt exclusively with taxes and tax situations. I feel any CPA, if they were to take this exam, would be overwhelmed by the amount of material it covers. Unlike the CPA exam, I got my scores immediately. Unlike the CPA exam, I didn’t have an educational requirement to take the exam … . Unlike the CPA exam, I didn’t have a work requirement beforehand to get the designation. Unlike the CPA exam, the exams themselves were significantly cheaper to take. …
Right now, I’m still self-employed. I don’t think I can work for someone else anymore. I outsource my bookkeeping work to other firms. I pay them, and charge a premium on my end to the client. If anyone needs an audit, review or compilation, I have colleagues who are CPAs that I can refer that matter to. …
Traditional accounting firms hire you and they expect you to not only know how to do the work but how their systems work, too. Just get the work done. Don’t think. Don’t ask questions. Just do it and do it right. I don’t have to worry about office systems. I have my own. I have my own way of doing things and get it done on my time and if someone doesn’t respect my time, they can pound sand. I can be a successful “tax professional.” I don’t have to sacrifice my time with my family. I can take my daughter to soccer practice and my sons to karate. I can go to the dentist and the doctor without having to make up hours. I can do all this from the comfort of my home.
The CPA profession needs major reform. The onerous hoops and hurdles one goes through to get that coveted title are generally only attainable by those who are privileged in the first place and not always necessarily from an educational standpoint.
Charleen Bell
I have not been able to get my CPA license although I passed the exam. I completed all the educational requirements and more, and have been on my job for 47 years now. At the time I applied for my license I was required to work indirectly under a licensed CPA for 12 months. I completed that requirement.
The CPA refused to sign off on me. I went up the chain of command requesting their assistance, but no one wanted to cross this person. I filed all appeals with the State Board of Accountancy to no avail. I even hired a licensing attorney to represent me at the hearing.
Interesting to note I work for the State of California. Four levels of management above me showed up to bar me from getting my license.
Prior to the hearing I provided all my support within two binders: Correspondence and Audit Schedules. I FedExed these binders to the State Board of Accountancy, who claimed they never received them. I reproduced these binders once again and sent them a second time by FedEx.
The CPA told the State Board of Accountancy she never reviewed my work. I showed the board correspondence within my binders that proved she did.
There were many emails from the CPA to myself stating she had reviewed and incorporated my schedules. But because the CPA did not initial my audit schedules, the State Board of Accountancy denied me my general accounting license.
This was the end of my dream of becoming a CPA.
I have paid my dues annually to maintain my educational benefits and connection.
The CPA refused to sign off on me. I went up the chain of command requesting their assistance, but no one wanted to cross this person. I filed all appeals with the State Board of Accountancy to no avail. I even hired a licensing attorney to represent me at the hearing.
Interesting to note I work for the State of California. Four levels of management above me showed up to bar me from getting my license.
Prior to the hearing I provided all my support within two binders: Correspondence and Audit Schedules. I FedExed these binders to the State Board of Accountancy, who claimed they never received them. I reproduced these binders once again and sent them a second time by FedEx.
The CPA told the State Board of Accountancy she never reviewed my work. I showed the board correspondence within my binders that proved she did.
There were many emails from the CPA to myself stating she had reviewed and incorporated my schedules. But because the CPA did not initial my audit schedules, the State Board of Accountancy denied me my general accounting license.
This was the end of my dream of becoming a CPA.
I have paid my dues annually to maintain my educational benefits and connection.
Sandy Viñas
I am a current CPA candidate and I can tell you from my perspective that the process is incredibly hard, and sometimes it feels impossible.
From the candidate’s perspective, there are many sacrifices that have to be made, that sometimes feel as if it is too much for too little reward:
1. Time: Studying for the exams take months; the FAR section alone is between two to three months. You sacrifice time with your family and friends, and maybe even at work because you are always studying. The sleepless nights because you are worried about passing the exam; getting up early to study and going to bed late because you are studying.
2. Money: Not only are you purchasing a pricey review course, but you may also purchase supplements or hire a tutor. You also have to pay to apply, and every time you fail an exam that is another $320 that you have to figure out how to pay for. You may have to take college classes to make up credits that NASBA doesn’t accept, and that is another expense you have to figure out how to pay for.
3. Your sanity: This is not an intelligence test, but taking a section of the exam, and failing by a lot or a little, makes you question why you are doing this to yourself. Or taking multiple sections over and over again, and only improving incrementally. It is demoralizing to study for months on end only to fail.
4. People around you just don’t get it: Having to explain over and over what it is that you are doing and why you have to take one section multiple times before you pass. Explaining why you can’t go out to do this or that because you have to study.
5. Making the sacrifices and still failing: Having less than a 50% chance of passing after making all those sacrifices is discouraging.
6. Once you pass, having the 18-month window to pass the other sections. This means you have to pass everything within 18 months. I’ve heard of people taking years to pass all four sections, and having to retake sections they have already passed because they lost the credit for it.
There is no standard as to what is taught in accounting programs. For example, I never was taught not-for-profit or governmental accounting as an undergraduate or even in my graduate accounting program, but yet FAR heavily tests these two topics.
I am in New York, and I have seen many job postings that require a master’s and CPA, paying only $50,000 or slightly more. Granted, there are some companies that pay more than that, but they are few and far between. It is discouraging to get the graduate degree in accounting, make the sacrifices that you do to sit for the exam and be licensed, and then be insulted with meager starting salaries.
I wish the process to become a CPA would be easier, and the reward would be greater.
The license is truly worth it in the end, but it is a long, hard, lonely path to take.
From the candidate’s perspective, there are many sacrifices that have to be made, that sometimes feel as if it is too much for too little reward:
1. Time: Studying for the exams take months; the FAR section alone is between two to three months. You sacrifice time with your family and friends, and maybe even at work because you are always studying. The sleepless nights because you are worried about passing the exam; getting up early to study and going to bed late because you are studying.
2. Money: Not only are you purchasing a pricey review course, but you may also purchase supplements or hire a tutor. You also have to pay to apply, and every time you fail an exam that is another $320 that you have to figure out how to pay for. You may have to take college classes to make up credits that NASBA doesn’t accept, and that is another expense you have to figure out how to pay for.
3. Your sanity: This is not an intelligence test, but taking a section of the exam, and failing by a lot or a little, makes you question why you are doing this to yourself. Or taking multiple sections over and over again, and only improving incrementally. It is demoralizing to study for months on end only to fail.
4. People around you just don’t get it: Having to explain over and over what it is that you are doing and why you have to take one section multiple times before you pass. Explaining why you can’t go out to do this or that because you have to study.
5. Making the sacrifices and still failing: Having less than a 50% chance of passing after making all those sacrifices is discouraging.
6. Once you pass, having the 18-month window to pass the other sections. This means you have to pass everything within 18 months. I’ve heard of people taking years to pass all four sections, and having to retake sections they have already passed because they lost the credit for it.
There is no standard as to what is taught in accounting programs. For example, I never was taught not-for-profit or governmental accounting as an undergraduate or even in my graduate accounting program, but yet FAR heavily tests these two topics.
I am in New York, and I have seen many job postings that require a master’s and CPA, paying only $50,000 or slightly more. Granted, there are some companies that pay more than that, but they are few and far between. It is discouraging to get the graduate degree in accounting, make the sacrifices that you do to sit for the exam and be licensed, and then be insulted with meager starting salaries.
I wish the process to become a CPA would be easier, and the reward would be greater.
The license is truly worth it in the end, but it is a long, hard, lonely path to take.
Carla R. Ross, QPA, CPA, MBA, EA, CPHI, GBA
Your question: Is it too hard to become a CPA?
The simple answer is, no, it is not too hard to become a CPA. While I agree with Kimberly Ellison-Taylor that I never want to take the exam again, I would not want to give birth again, either. It was two years of my life I cannot get back. The test is not too hard; it is too expensive. Make it cheaper — $100 per part is reasonable, with a $65 retake fee. Passing the CPA exam is an unfilled promise. The amount of effort in difficult course work, and the cost of continuing professional education, and the interviews for jobs I did not get, the effort feels like a waste. I don’t recommend it.
Something is off in the accounting world’s perspective on the CPA exam; you are expecting people to put in a supreme effort for a credential that is revered as the pinnacle to achieve success, for an entry-level job with very little career path, and very little money to start. Computer science majors with no experience are starting their summer jobs making $50,000 a year at age 21. I was 39 years old making $47,000 a year, with a CPA and an MBA. The CPA did not move my career; the MBA did.
It is not the exam; it is the payoff after that effort. It is the opportunities available to match the effort. At some point with a high-powered credential such as the CPA, you expect to become the chief financial officer, audit manager, partner, director of accounting operations, chief accountant, controller, or city treasurer — any job that is worthy of the high-powered credential.
No, the industry needs to rethink what they need. The industry needs to develop a credential for the need; leave the CPA brand alone. The level of job that needs talent is early career work, three to 10 years’ experience. Develop a certification that includes Accounting 101, 102 and a few audit classes and nine hours of technology skills. That credential can be offered at the baccalaureate level.
I think there are too many CPAs, (maybe not after the year 2025) and I know many that just stopped using the credential because the high-level opportunities to match the credential simply never materialized. There is a mismatch with the industry need and the promise of the credential. Train students for what the industry needs; stop selling the CPA pie in the sky.
The simple answer is, no, it is not too hard to become a CPA. While I agree with Kimberly Ellison-Taylor that I never want to take the exam again, I would not want to give birth again, either. It was two years of my life I cannot get back. The test is not too hard; it is too expensive. Make it cheaper — $100 per part is reasonable, with a $65 retake fee. Passing the CPA exam is an unfilled promise. The amount of effort in difficult course work, and the cost of continuing professional education, and the interviews for jobs I did not get, the effort feels like a waste. I don’t recommend it.
Something is off in the accounting world’s perspective on the CPA exam; you are expecting people to put in a supreme effort for a credential that is revered as the pinnacle to achieve success, for an entry-level job with very little career path, and very little money to start. Computer science majors with no experience are starting their summer jobs making $50,000 a year at age 21. I was 39 years old making $47,000 a year, with a CPA and an MBA. The CPA did not move my career; the MBA did.
It is not the exam; it is the payoff after that effort. It is the opportunities available to match the effort. At some point with a high-powered credential such as the CPA, you expect to become the chief financial officer, audit manager, partner, director of accounting operations, chief accountant, controller, or city treasurer — any job that is worthy of the high-powered credential.
No, the industry needs to rethink what they need. The industry needs to develop a credential for the need; leave the CPA brand alone. The level of job that needs talent is early career work, three to 10 years’ experience. Develop a certification that includes Accounting 101, 102 and a few audit classes and nine hours of technology skills. That credential can be offered at the baccalaureate level.
I think there are too many CPAs, (maybe not after the year 2025) and I know many that just stopped using the credential because the high-level opportunities to match the credential simply never materialized. There is a mismatch with the industry need and the promise of the credential. Train students for what the industry needs; stop selling the CPA pie in the sky.
Jim Rigos, JD, LLM, CPA
At the last AICPA Exam Division Providers meeting, the candidate numbers were dreadful, which is somewhat surprising because they are doing a better job than ever with expanding the CPA exam testing.
What AICPA’s Professional Ethics Enforcement Committee will not admit to is that their dropping the CPA firm ownership from the traditional 100% all-professional requirement to a mere 50%-plus is a significant driver of the depletion. This gave the Big Four firms the professional authorization to hire and promote to partner non-CPAs. The “de minimis exception” was sold to us as intending to reward Betty the bookkeeper for her long faithful employment. What may be good for the Big Four is bad for all other CPAs and our educators.
No other learned profession would allow such a professional dilution. The medical, legal, engineering, architectural, and other professions require all owners to meet their traditional professional expertise [requirement]. The 100% expertise [requirement] is intended to protect the public interest. I thought this “public” — our middle name — orientation was our CPAs’ overriding objective too. On this issue at least I was apparently wrong.
This giveaway will continue to naturally erode professionalism in our calling. Less accounting majors, and fifth-year 120-hour program professors are the natural, even if not intended, consequence.
These consequences were certainly foreseeable.
Responsible CPAs should insist that the AICPA’s PEEC reverse this ownership dilution giveaway they created.
And the National Association of State Boards of Accountancy is complicit here too. After the AICPA’s PEEC lobbying, they added the professional accounting ownership dilution provision to the Uniform Accountancy Act. In my opinion this too should be repealed.
What AICPA’s Professional Ethics Enforcement Committee will not admit to is that their dropping the CPA firm ownership from the traditional 100% all-professional requirement to a mere 50%-plus is a significant driver of the depletion. This gave the Big Four firms the professional authorization to hire and promote to partner non-CPAs. The “de minimis exception” was sold to us as intending to reward Betty the bookkeeper for her long faithful employment. What may be good for the Big Four is bad for all other CPAs and our educators.
No other learned profession would allow such a professional dilution. The medical, legal, engineering, architectural, and other professions require all owners to meet their traditional professional expertise [requirement]. The 100% expertise [requirement] is intended to protect the public interest. I thought this “public” — our middle name — orientation was our CPAs’ overriding objective too. On this issue at least I was apparently wrong.
This giveaway will continue to naturally erode professionalism in our calling. Less accounting majors, and fifth-year 120-hour program professors are the natural, even if not intended, consequence.
These consequences were certainly foreseeable.
Responsible CPAs should insist that the AICPA’s PEEC reverse this ownership dilution giveaway they created.
And the National Association of State Boards of Accountancy is complicit here too. After the AICPA’s PEEC lobbying, they added the professional accounting ownership dilution provision to the Uniform Accountancy Act. In my opinion this too should be repealed.
Bruce Rosenberg
I would like to respond to the request for comments about revisiting the 150-hour requirement. ...
The whole idea was to raise the cost of entry high enough to keep poor and lower-middle-class students out. This has been extraordinarily successful. The extra year keeps people out of the labor force while unnecessary education costs continue. This probably costs each person over $100,000.
As it stands, it takes 120 hours to finish college. Only 36 hours are of use in the CPA test. The other 84 hours are for cultural enrichment. Fewer than 36 hours are needed to sit for the test. An additional 30 hours of cultural enrichment are totally frivolous.
The politically correct way to go forward is to make silly efforts to increase the numbers. Ideas like supporting high school kids through college will most likely have an extremely low net effect. What percentage will finish college? What percentage will still want to be CPAs? Meaningless efforts allow the powers that be to look sincere while grinning inside.
I am curious to know what the future conversation will look like. My guess is the 150-hour requirement will remain so that it can continue serving the purpose for which it was intended.
The whole idea was to raise the cost of entry high enough to keep poor and lower-middle-class students out. This has been extraordinarily successful. The extra year keeps people out of the labor force while unnecessary education costs continue. This probably costs each person over $100,000.
As it stands, it takes 120 hours to finish college. Only 36 hours are of use in the CPA test. The other 84 hours are for cultural enrichment. Fewer than 36 hours are needed to sit for the test. An additional 30 hours of cultural enrichment are totally frivolous.
The politically correct way to go forward is to make silly efforts to increase the numbers. Ideas like supporting high school kids through college will most likely have an extremely low net effect. What percentage will finish college? What percentage will still want to be CPAs? Meaningless efforts allow the powers that be to look sincere while grinning inside.
I am curious to know what the future conversation will look like. My guess is the 150-hour requirement will remain so that it can continue serving the purpose for which it was intended.
Steven R. Deviese, MBA, CPA
I don’t think becoming a CPA is too hard, but that is not the problem with the profession. I have been a CPA for decades and started in the profession in 1974. During that time, I have observed the following:
xThe profession has become increasingly irrelevant because of competition from other providers of financial services. The bulk of CPAs do not work for a large firm and work for either a small firm or as sole practitioners. On the low end, providers such as various tax services have chiseled away that business. On the tax planning side, CFPs, etc., have eaten into that market.
Thank you for allowing me to address some concerns that I have had for years.
xThe profession has become increasingly irrelevant because of competition from other providers of financial services. The bulk of CPAs do not work for a large firm and work for either a small firm or as sole practitioners. On the low end, providers such as various tax services have chiseled away that business. On the tax planning side, CFPs, etc., have eaten into that market.
- Other professions, such as law, medicine, etc., have specialty designations. If you asked the average citizen which they should go to, a CPA or a CFP, I believe they will almost always say CFP. There was an attempt at specialty designations by the AICPA some years back. They made it almost impossible to be in a specialty unless you worked for a large firm. ...
- Our profession is regulated by each state, but the tax services, CFPs, etc. are not. I feel our profession has done a very poor, poor job of promoting our work. Why spend an extra year taking accounting courses to sit for the exam, when you can just get a Master of Taxation degree and then an Enrolled Agent designation.
- The profession seems to have been caught up in a lot of defensive accounting as shown by the sheer number of various official pronouncements. I have read the votes and considerations by the various committees and see where the big firms are primarily interested in how the drafts will impact their audit clients.
Thank you for allowing me to address some concerns that I have had for years.
Rhett Butler, CPA
I have a few thoughts on the matter. I graduated when my state was just instituting the 150-hour rule. I took a few extra courses to get there but it wasn’t necessary. In my opinion, the CPA is equivalent to a master’s degree so we should only require 120 hours.
Jay Starkman, CPA
CPA may still be a profession serving the public interest, but it is rapidly deteriorating into an industry.
Over the past 30 years, self-inflicted missteps lost our control as standard-setters and self-regulators to Public Company Accounting Oversight Board lawyers, and the Securities and Exchange Commission, which formerly deferred to the American Institute of CPAs. "Non-GAAP" financials further dilute our relevance.
1998 started a precipitous decline with the AICPA's "The Vision," that consultants might not have to learn auditing to become CPAs. You can become a CGMA without becoming a CPA. (What's a CGMA?) Those initials were added to PFS/PFP, CITP/IT, ABV, CFF, and FVS, among others. While these dilute the prestige of the CPA — some were once ethically proscribed as "incompatible occupations" — you can keep those extra initials only while continuing to pay AICPA credential dues. For tax accreditation, become an Enrolled Agent, or a Certified Fraud Examiner for fraud.
Audits are now loss leaders used as “feeders” for consulting engagements. Consulting revenues dwarf audit revenues. What was once considered status to call a firm “Certified Public Accountants” has been dropped by most firms in favor of showcasing a multidisciplinary professional service organization. The top partner is now called CEO, highlighting the business rather than professional aspect of the firm.
The profession has rendered itself leaderless because no one credible voice can speak responsibly for the divergent interests of consultant, product salesman, and professional CPA — roles that carry conflicting obligations to clients, the bottom line and the public.
The profession’s decline resulted from the seductive profits of providing consulting services to audit clients. As trusted professionals, CPAs already had their foot in the clients’ doors. It was access they were trusted not to abuse. Ultimately, CPA firms decided to undertake consulting services, staffed entirely by non-CPAs and serving no public interest, as a “business” while simultaneously carrying on an accounting practice as a “profession.”
Over the past 30 years, self-inflicted missteps lost our control as standard-setters and self-regulators to Public Company Accounting Oversight Board lawyers, and the Securities and Exchange Commission, which formerly deferred to the American Institute of CPAs. "Non-GAAP" financials further dilute our relevance.
1998 started a precipitous decline with the AICPA's "The Vision," that consultants might not have to learn auditing to become CPAs. You can become a CGMA without becoming a CPA. (What's a CGMA?) Those initials were added to PFS/PFP, CITP/IT, ABV, CFF, and FVS, among others. While these dilute the prestige of the CPA — some were once ethically proscribed as "incompatible occupations" — you can keep those extra initials only while continuing to pay AICPA credential dues. For tax accreditation, become an Enrolled Agent, or a Certified Fraud Examiner for fraud.
Audits are now loss leaders used as “feeders” for consulting engagements. Consulting revenues dwarf audit revenues. What was once considered status to call a firm “Certified Public Accountants” has been dropped by most firms in favor of showcasing a multidisciplinary professional service organization. The top partner is now called CEO, highlighting the business rather than professional aspect of the firm.
The profession has rendered itself leaderless because no one credible voice can speak responsibly for the divergent interests of consultant, product salesman, and professional CPA — roles that carry conflicting obligations to clients, the bottom line and the public.
The profession’s decline resulted from the seductive profits of providing consulting services to audit clients. As trusted professionals, CPAs already had their foot in the clients’ doors. It was access they were trusted not to abuse. Ultimately, CPA firms decided to undertake consulting services, staffed entirely by non-CPAs and serving no public interest, as a “business” while simultaneously carrying on an accounting practice as a “profession.”
