What an accounting license is and why you need one
An accounting license is a credential that allows you to work as a certified public accountant (CPA) or public accountant in your state. The license shows that you have met education and testing requirements set by your state's accounting board, and it gives you the legal right to offer accounting services to the public and sign off on financial statements.
You do not need a license to do basic bookkeeping or tax preparation for yourself or a family member. But if you want to work as an accountant for a firm, start your own accounting practice, or sign tax returns and financial statements professionally, your state requires a license. The requirements and the name of the credential vary by state — some issue a CPA license, others issue a public accountant license, and a few offer both.
The path to a license takes time. Most people spend two to four years meeting the education requirement, then several months preparing for and taking the exam. After you pass, you typically need one to two years of supervised work experience before the state will issue your license.
Key Takeaways
- Every state requires a bachelor's degree with accounting coursework, and most require 150 total college credits (not just a four-year degree) before you can sit for the CPA exam.
- You must pass the Uniform CPA Exam, a four-part test administered by the National Association of State Boards of Accountancy (NASBA), and you can take the parts in any order.
- After passing the exam, you need one to two years of work experience under a licensed accountant or in an approved role, depending on your state.
- Your state's accounting board (not a national body) issues the final license, so requirements and timelines vary — check your specific state board's website before you start.
- Some states offer a public accountant license with lower requirements than a CPA license, which may be faster if you do not plan to sign audits or work in certain roles.
Education requirements before you can test
Most states require a bachelor's degree with a major or concentration in accounting, but the degree alone is not enough. You also need a total of 150 college credits — roughly equivalent to a bachelor's degree plus one year of graduate school or additional undergraduate courses. Some states allow you to count certain work experience toward this total, but most require the credits to come from a college or university.
The 150 credits must include specific accounting and business courses. A typical path includes financial accounting, managerial accounting, auditing, taxation, and accounting information systems, plus courses in business law, economics, and ethics. If you earn a four-year accounting degree, you will usually have about 120 credits, so you will need to take additional courses — either in a master's program, a post-bachelor's certificate program, or as individual upper-level courses at a university.
A few states have lower requirements. Some allow a CPA license with a bachelor's degree and no 150-credit rule, though these states are becoming rare. Check your state accounting board's website to see the exact requirement for your state before you enroll in a program.
Passing the Uniform CPA Exam
The Uniform CPA Exam is a standardized test given in all 50 states and U.S. territories. It is administered by the National Association of State Boards of Accountancy (NASBA) and covers four subjects: Auditing and Attestation, Financial Reporting, Regulation, and Business Environment and Concepts. You can take the four parts in any order, and you do not have to pass them all at once.
Each part takes about four hours and costs roughly $200 to $250 per part, though the exact fee varies by state. You must register through your state's accounting board, not directly with NASBA. The board will verify that you meet the education requirement before allowing you to register.
Most people spend two to four months studying for each part, using review courses, textbooks, and practice exams. Many candidates take a review course — either in-person or online — which costs between $1,500 and $3,000 for all four parts. You have a limited time window to pass all four parts (usually 18 months from your first attempt), so planning your test schedule matters.
Work experience and supervision requirements
After you pass the CPA Exam, you must complete a period of supervised work experience in accounting or auditing. Most states require one to two years of full-time experience under the supervision of a licensed CPA or in an approved role. The exact requirement depends on your state and sometimes on the type of work you do.
Supervised experience typically means working for an accounting firm, a corporation's accounting department, a government agency, or a non-profit, and having a licensed CPA review and sign off on your work. Some states allow experience in certain roles without a direct supervisor — for example, working as an auditor for a state agency or as an internal auditor for a large company. Your state board publishes a list of approved experience types.
You can start this experience before you pass the exam, and some of it may count toward your requirement even if you have not yet passed all four parts. Once you complete the required hours and your supervisor confirms them to the state board, you can move forward with your license process.
explore for your state license
Once you have passed the exam and completed your work experience, you submit an process to your state's accounting board. The process asks for your exam scores, your work history, references from supervisors, and proof of your education. Some states require a background check or fingerprinting.
The board reviews your process to confirm that you meet all requirements. This process usually takes four to eight weeks, though it varies by state. Some states issue the license when ready after approval; others require you to take an oath or pay a license fee before the credential is official.
Your license is not permanent. Most states require you to renew it every one to three years and to complete continuing education hours — typically 40 to 80 hours per renewal period — to keep your license active. The continuing education must cover accounting, auditing, taxation, or related topics approved by your state board.
Public accountant licenses and other alternatives
Some states offer a public accountant license in addition to or instead of a CPA license. A public accountant license usually requires fewer credits (sometimes just a bachelor's degree with no 150-credit requirement) and may not require the full CPA Exam — some states have their own exam or allow you to take only certain parts of the CPA Exam. However, a public accountant license is more limited: you may not be able to sign audits or work in certain roles that require a CPA.
A public accountant license is worth considering if you plan to do tax preparation, bookkeeping, or accounting work for small businesses but do not need to sign audits or work for large firms. The path is faster and less expensive, though it closes some doors later. Check your state board's website to see whether this option exists in your state and what it allows you to do.
If you do not want to pursue a license at all, you can work as a bookkeeper, tax preparer, or accounting technician without one. These roles do not require a license in most states, though some employers prefer candidates with certain certifications like the Certified Bookkeeper (CB) or Enrolled Agent (EA) credential.
Timeline and cost overview
| Step | Typical Time | Typical Cost |
|---|---|---|
| Complete 150 college credits | 2–4 years | $20,000–$80,000 (varies widely by school) |
| Study for and take CPA Exam | 4–12 months | $1,500–$3,500 (review course + exam fees) |
| Complete work experience | 1–2 years | None (you are paid as an employee) |
| explore for license and receive it | 1–3 months | $50–$300 (process and license fee) |
| Total | 4–8 years | $21,500–$83,800 |
The total cost and time depend heavily on where you go to school, whether you need a master's degree or just additional courses, and how quickly you pass the exam. Some people complete the education and exam in three years; others take five or six. Work experience happens while you are employed, so it does not add direct cost, but it does delay when you receive your license.
Many people work full-time in accounting roles while studying for the exam and completing their remaining credits. This approach stretches the timeline but reduces the out-of-pocket cost for education and allows you to earn income while you work toward your license.
Frequently Asked Questions
Can I take the CPA Exam before I finish the 150 college credits?
No. Your state accounting board will not let you register for the exam until you have completed all education requirements, including the 150 credits. You must submit proof of your degree and transcripts before the board approves your registration.
Do I have to work for a CPA firm to get my work experience?
Not necessarily. You can gain experience in a corporation's accounting department, a government agency, a non-profit, or other approved settings. The key is that your work involves accounting or auditing tasks and that a licensed CPA or approved supervisor signs off on your hours. Check your state board's list of approved experience types.
What happens if I fail one part of the CPA Exam?
You can retake that part as many times as you need, but you must pass all four parts within a set window — usually 18 months from your first attempt. If you do not pass all four within that time, your oldest passing score expires and you have to retake it.
Do I need a master's degree to get 150 credits?
No. A master's degree is one way to reach 150 credits, but you can also take a post-bachelor's certificate program or individual upper-level courses at a university. Many people earn a four-year accounting degree and then take 30 additional credits as standalone courses, which is often cheaper and faster than a full master's program.
Can I move my license to another state?
Yes, but the process varies by state. Some states have reciprocity agreements and will issue a license based on your current license with minimal extra steps. Others require you to meet their specific education or experience requirements, which may mean taking additional courses or exams. Contact the accounting board in the state where you want to move to learn what is required.