Rethinking the CPA 150-hour requirement: There must be a change
Blake Oliver, CPA
Host of The Accounting Podcast, The Most Popular Podcast for Accountants | Creator of Earmark Where Accountants Earn Free CPE Anytime, Anywhere
In my latest article on the Firm of the Future blog, I delve into the challenges associated with the CPA 150-hour education requirement. This mandate, which I experienced firsthand when transitioning into accounting mid-career, often poses a significant hurdle for potential CPAs.
The high cost of obtaining a master's degree (up to $100,000 when accounting for opportunity costs) imposes a hefty financial burden on young accountants starting their careers. Despite this, our profession desperately needs new talent.
Yet at the current rate of production of accounting graduates, we face a significant supply-demand gap. The 150-hour requirement exacerbates this issue and deters economically disadvantaged individuals and college students from considering a career in accounting.
Counterarguments exist, such as concerns about CPA mobility and lowering the bar for becoming a CPA. However, no solid evidence supports the claim that additional education produces better CPAs. Moreover, NASBA already has the discretion to waive the 150-hour requirement for accountants licensed abroad, suggesting similar accommodations could be made for domestic CPAs.
It's time to rethink this requirement. To solve the problem, let's restore the 120-hour option with two years of work experience, allowing future CPAs to swap an additional year of education for a year of experience on the job. This would not only remove financial barriers for aspiring CPAs but also increase diversity in the profession and put us on par with other countries where the education requirement for accountants is less demanding.
It seems the profession agrees with the need for change. In an informal poll at this year's BDO Alliance conference, only 20% of managing partners supported the 150-hour requirement, with the remaining 80% favoring changing or removing it altogether.
Our profession is a cornerstone of our economy. We need it to be strong, vibrant, and accessible. I encourage you to join the conversation and let your voice be heard. Contact your state board of accountancy, the AICPA , and the NASBA to let them know we need a change.
Read the full article here: https://www.firmofthefuture.com/training-and-certification/rethinking-150-hour-requirement/
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Finance Manager
6 个月Ala'a Al-Qasrawi,CFM, FMVA, CBCA, IFRS (DipIFR-ACCA is in progress)
Senior Not-For-Profit Accounting Consultant, Armanino
1 年Here's where I'm stuck. I have 150+ college credits. But the TXCPA board didn't count my arts administration minor for any business courses. I now need 27 credits almost exclusively in business topics that the CPA board likes just to sit for the CPA. Yes, that's right, I'll need over 180 credits before I can sit for the CPA exam. They showed their hand - it's not about the credits - it's about the knowledge. This goes so much deeper than the 150 credit hours.
Tax Manager at KPMG
1 年Some problems can’t be fixed by throwing more money at it. This is an exception. Pay more and more will come.
Chief Accessibility And Operations Officer At Techopolis Online Solutions
1 年Here’s what we need to do from me as a young aspiring CPA. First we need to increase pay. second we need to eliminate the 150 hours third we need to make sure that the young accountants have abilities to go to conferences and fourth we need to ensure the burnout does not occur so people don’t leave the profession.