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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and it becomes clear that this extra requirement—originally designed to raise accounting standards—is starting to feel outdated in today's fast-moving global economy.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
08-06-2025
- Business
- Yahoo
I've been a financial planner for over 10 years. Here are the 6 most useful lessons I've learned from my wealthiest clients.
The author has over 10 years of experience as a certified public accountant and financial planner. Most of his wealthy clients have common habits, mindsets, and wealth-building strategies. He's learned six useful financial lessons, which include generosity, health, and relying on others. I'm a certified public accountant and certified financial planner with over a decade of experience helping high-income professionals and diverse business owners take control of their finances. My clients range from medical professionals to small businesses, and I help them grow their wealth, reduce tax burdens, and run more profitable businesses. Many of my high-net-worth clients share common habits, mindsets, and strategies that helped them build and maintain their wealth. The good news is that anyone can apply these habits to improve their financial life. Here are six of the most useful lessons I've learned from my wealthiest clients. One of the most profound lessons I've learned is that life becomes richer when you focus on pouring into others, rather than just focusing on yourself. For example, clients who are generous with their employees often see retention rates soar. This principle extends beyond finances into mental well-being, relationships, and overall happiness. Generosity has a way of opening doors that talent or hard work alone sometimes can't. Many of my wealthiest clients often share that they wouldn't be where they are without the generosity of others who helped them along the way. Wealthy individuals often have incredibly demanding schedules, leaving little time for personal tasks or downtime. One key to their success is recognizing the power of outsourcing and delegation. Whether they hire a nanny to help with childcare or work with a financial advisor to manage their finances, they understand that they can't do it all alone. Instead of trying to juggle every responsibility, they build a trusted team around them with professionals who help them stay focused on what matters most. They become comfortable relying on others, knowing it's the only way to accomplish everything on their plate while still maintaining their sanity and quality of life. If you don't take care of your health, it will be harder to reach your goals, no matter how important they are. Many of my wealthiest clients have learned this firsthand. They've realized that when their mental, physical, spiritual, or emotional health is off-balance, their ability to lead, create, and perform suffers. As a result, they intentionally make time and invest in activities that support their overall health, such as exercise, therapy, spiritual practices, or rest. Prioritizing health is not a luxury; it's a necessity. One of the most consistent pieces of wisdom I hear from my wealthy clients is this: never stop learning. No matter their industry or background, they all attribute part of their success to a mindset of continuous growth. They understand that lifelong learning is essential to keep progressing in both life and business. There's no single path to learning. Some lean on books and mentors, while others invest in masterminds, coaching, or formal courses. What matters is the commitment to growth. One of the biggest challenges my wealthy clients face is resisting the urge to significantly increase their lifestyle as their income grows. It's tempting to spend more when you make more, but true wealth often requires discipline and delayed gratification. Becoming wealthy means making intentional trade-offs. That might mean reinvesting in your business, putting a down payment on a rental property, or consistently investing in the stock market. Rather than inflating your lifestyle, put your money to work. There's an important difference between being rich and being truly wealthy, and it often comes down to owning assets. The rich may earn high incomes that support a luxurious lifestyle, but the wealthy prioritize acquiring income-generating assets that work for them while they sleep. Earning a solid income is important, but it's rarely enough on its own to build long-term wealth. To reach and sustain true wealth, you can't rely solely on your labor. You need assets that generate cash flow with minimal day-to-day involvement. These assets might include equity investments, real estate with a trusted property manager, or a business supported by a reliable team. Jovan Johnson, CPA and CFP, is the co-owner of Piece of Wealth Planning and specializes in strategic tax planning, personal financial planning, and small business accounting. Read the original article on Business Insider Error 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
