07-07-2025
How The CPA License Stacks Up Globally: Is The U.S. Behind?
Bryce Welker is a Certified Public Accountant and owns a portfolio of 20+ test prep websites, including the CPA Exam Guy.
For years, I've helped CPA candidates across the country—many of them talented, hardworking and deeply committed to the profession. And yet, one of the most common hurdles I see isn't preparing for the CPA Exam itself. It's the 150-hour education requirement.
At first glance, it seems straightforward: To become a licensed CPA in the U.S., you need to complete 150 college credit hours, typically one year beyond a bachelor's degree. But dig a little deeper, and it becomes clear that this extra requirement—originally designed to raise accounting standards—is starting to feel outdated in today's fast-moving global economy.
A Rule Born In The '80s, Cemented In The '90s
The 150-hour rule was first introduced in the late 1980s to elevate the accounting profession. The thinking was simple: More education equals more competent professionals. By the early 2000s, it was widely adopted. Then, every U.S. state required 150 hours for CPA licensure, although most allow candidates to sit for the exam with just 120.
But that extra 30 hours often doesn't translate to better accountants. Many students meet the requirement by cobbling together unrelated credits. Sometimes they come from community colleges, online courses or even continuing education programs. They are gained solely to satisfy the rule and can cost thousands of dollars, potentially delaying entry into the workforce.
I've found that for many candidates, especially those from low-income backgrounds or those changing careers, it's a major barrier. And the profession is starting to feel the effects.
A Shrinking Pipeline And A Growing Push For Reform
The CPA pipeline is shrinking fast. According to the AICPA, the number of CPA exam candidates in the U.S. continues to drop, and accounting enrollments at U.S. universities are down across the board. It's not hard to connect the dots.
States are beginning to take action. Minnesota, for example, made headlines in 2025 when it passed legislation introducing two new CPA licensure pathways: a bachelor's degree plus two years of experience or a master's degree plus one year of experience. These alternatives will be effective starting January 1, 2026, and the traditional 150-hour rule will sunset in 2030.
They're not alone. South Carolina passed a similar bill that goes into effect in June 2025, allowing CPA candidates to qualify with a bachelor's degree, two years of professional experience and a passing CPA exam score. Oregon also enacted a reform that offers the same experience-based alternative while preserving the traditional path.
In total, more than a dozen states, including Texas, Tennessee, Indiana, Iowa, Georgia, Virginia and Utah, have introduced or passed legislation offering alternative routes to licensure. The common thread? Flexibility, not lowered standards.
Even NASBA and the AICPA, long-time supporters of the 150-hour requirement, have acknowledged the need for change. In May 2025, they approved a proposal to add an alternative pathway to the Uniform Accountancy Act: a bachelor's degree, two years of supervised experience and passage of the CPA exam.
So, How Do Other Countries Handle It?
When I looked into how the rest of the world licenses accountants, the contrast was pretty stark.
• Canada: CPA candidates complete a bachelor's degree and enroll in the CPA PEP Program, which blends coursework with practical experience. No 150-hour rule.
• United Kingdom: Aspiring Chartered Accountants qualify through a combination of a degree and a structured training contract with a firm. The emphasis is on real-world apprenticeship, not extra classroom hours.
• Australia: Candidates earn a degree, complete the CA Program and work in the field. Again, no fixed number of academic hours.
• India: The Chartered Accountant path relies heavily on examinations and a multiyear internship period—no college credit hours required at all.
Across the board, international systems place more weight on professional experience and performance than on academic benchmarks.
Is It Time For The U.S. To Catch Up?
The accounting profession is evolving globally. Firms are embracing hybrid work, integrating AI into audits and hiring from broader, more diverse pipelines. But in the U.S., our licensing model hasn't caught up.
While we ask students to invest more money and time into academic coursework, other countries are promoting flexible, work-based models that are more inclusive and responsive to economic realities.
I believe we're just at the beginning of a wave of reform. As staffing shortages worsen and firms struggle to fill entry-level roles, more states will follow Minnesota, South Carolina, Oregon and a handful of others. We may even see a national or international push toward standardizing and modernizing CPA licensure.
For now, the 150-hour rule remains in place in most states. But the momentum is shifting. And as someone who went through the process, I'm optimistic. Because at its core, this profession thrives not by gatekeeping, but by cultivating talent, skill and integrity, however it finds them.
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