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Forbes
07-07-2025
- Business
- Forbes
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and it becomes clear that this extra requirement—originally designed to raise accounting standards—is starting to feel outdated in today's fast-moving global economy.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. Forbes Business Development Council is an invitation-only community for sales and biz dev executives. Do I qualify?
Yahoo
16-05-2025
- Business
- Yahoo
NJCPA proposes new route for CPA licensure in New Jersey
The New Jersey Society of Certified Public Accountants (NJCPA) has introduced a proposal aimed at establishing an alternative route for CPA licensure within the state. This initiative seeks to amend New Jersey's Accountancy Act, allowing candidates to qualify by obtaining a bachelor's degree, completing two years of professional experience, and successfully passing the CPA Exam. Identified as bill A5598, the proposed legislation is backed by Assemblyman Sterley Stanley (D-East Brunswick). It received approval from the Assembly Regulated Professions Committee on 15 May, representing a notable advancement in the licensure process for prospective CPAs. At present, candidates are required to complete a minimum of 150 credits, which entails a bachelor's degree plus an additional 30 credits or a master's degree. They must also acquire one year of work experience in accounting and pass the CPA Exam to be eligible for licensure. The suggested modifications would provide an alternative pathway for candidates while still preserving the current requirements. The New Jersey State Board of Accountancy (NJBOA) has shown its support for this new licensure option. Additionally, the bill includes provisions for individual practice privileges for out-of-state licensed CPAs who hold a bachelor's degree or higher, have successfully completed the CPA exam, and possess at least one year of experience. A recent survey conducted by the NJCPA indicated that 66% of 187 businesses faced difficulties in sourcing accounting talent over the past year. Among these firms, 47% reported that this shortage has presented a moderate or significant risk to their operations. NJCPA executive director and CEO Aiysha Johnson said: 'The introduction of an additional path to CPA licensure will allow for greater flexibility in the licensure process without compromising the rigorous educational and experiential requirements that ensure CPAs remain trusted advisors. 'Keeping the profession open and accessible to promising young professionals is crucial, not only to the accounting field itself but to the communities CPAs serve.' "NJCPA proposes new route for CPA licensure in New Jersey" was originally created and published by The Accountant, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
12-05-2025
- Business
- Yahoo
Gleim Exam Prep Unveils Prep Pal— AI-Powered Study Tool Designed for CPA Exam Success
Purpose-built with expertly curated content, Prep Pal revolutionizes exam prep by delivering instant clarity, reducing study stress, and keeping future CPAs on track.. Gainesville, Fl., May 12, 2025 (GLOBE NEWSWIRE) -- Gleim Exam Prep, an accounting exam prep leader for 50 years, is thrilled to announce the public launch of Prep Pal. This revolutionary AI-powered tool will elevate the CPA study experience. Prep Pal AI is the latest innovation from Gleim Exam Prep and is designed with the unique needs of CPA candidates in mind. Passing the four, 4-hour-long CPA Exam sections requires candidates to learn and retain a vast amount of material, and they face the additional challenge of balancing their studies with competing priorities. Passing the CPA Exam takes most candidates at least one year, and many also take classes or work full-time. Prep Pal AI was developed to minimize disruptions and provide additional context to help candidates focus and stay on track. Prep Pal AI differentiates itself from generic AI tools by offering a carefully curated and rigorously tested experience. There's no need to worry about crafting the perfect question or verifying the accuracy of responses. In a couple of clicks, Prep Pal provides immediate, reliable information based on Gleim's expertly authored materials, allowing candidates to drill down into their studies without unnecessary delays. "We understand how frustrating it can be when you hit a roadblock in your studies," said Lorie M. Gleim, CEO of Gleim Exam Prep. "The CPA Exam is challenging enough without added stress. Prep Pal AI is designed to change moments of uncertainty to moments of understanding, immediately providing clarity so candidates can keep making progress toward their career goals."After extensive beta testing and feedback from real CPA candidates, Prep Pal AI has been fine-tuned to be as helpful, reliable, and user-friendly as possible and is available in Gleim's Premium Pro CPA Review. Currently, Prep Pal offers five targeted prompts to assist in exam preparation: • Summarize Text: Quickly obtain concise summaries of complex topics.• Give an Example: Receive examples to clarify challenging concepts.• Identify Key Points: Focus on the most important details to maximize study efficiency.• Define Terms: Instantly understand unfamiliar terminology.• Paraphrase Text: View information presented in an alternative way to enhance comprehension. "Our goal has always been to make studying for the CPA Exam as effective and stress-free as possible," added Gleim. "Prep Pal is another big step forward in our already robust candidate support package." Additionally, Gleim Exam Prep remains committed to providing the award-winning support that it is known for industry-wide. Gleim's Personal Counselors are available to help candidates set up personalized study plans and stay motivated. Gleim's team of Accounting Experts stands ready to answer technical questions about course content. "Prep Pal is an exciting addition to our suite of study tools, but it doesn't replace the human touch that defines Gleim," said Gleim. "If you need someone to talk to or have specific accounting questions, our team is here and ready to help." Prep Pal represents Gleim's commitment to leveraging advanced technology to support CPA candidates. By offering instant, AI-driven, curated answers, Gleim empowers students to overcome challenges swiftly and maintain momentum in their exam preparation. And by continuing to offer assistance with a personal touch, Gleim fully supports candidates on their journey to pass the CPA Exam. About Gleim Exam Prep:Gleim provides online self-study courses for accounting certification exams, including the CPA, CMA, CIA, EA, and FMAA. For 50 years, Gleim's mission has been to maximize knowledge transfer while minimizing customers' time, frustration, and cost. With a proven system for success, including the best questions and answer explanations, candidates gain a meaningful understanding of the material not only to pass the exam with confidence the first time, but to be successful professionals with a command of their subjects. Gleim has helped candidates earn millions of passing scores. For more information about Gleim, visit CONTACT: Joy Riddle Gleim Exam Prep 352.375.0772 ext 509 in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
