Congrats, you’ve finally passed the CPA exam! After months (or years!) of meticulous study sessions, sleepless nights, and countless practice questions, you can now bask in the glory of your hard-earned success.
Before you can add those coveted CPA letters after your name though, there are a few more things you’ll need to make sure you take care of. Your post-CPA exam tasks will depend on the path you took to sit for the exam.
If you sat for the exam with only 120 credit hours, then you may need to complete your education requirements. You also may need to complete your work experience requirements and, depending on which U.S. state you’re in you may need to complete an ethics exam.
Thankfully, the post CPA exam steps are all fairly straightforward. Let’s have a closer look.
I Passed the CPA Exam, Now What? 5 Steps to Follow
Steps to Follow Post-CPA Certification
What do you have to do if you have passed the CPA exam but are not licensed? You’ll need to make sure you check the remaining boxes to becoming a CPA, including:
1 – Complete the CPA Experience Requirements
Most states require 2,000 – 4,000 working hours in some type of accounting position or accounting-focused role within a certain period of time, typically 2-4 years. To find out your state’s exact requirements, check out our state-by-state guides and your state’s Board of Accountancy website to understand the exact amount of experience required to earn your license.
Most states require that your work experience comes under the direct supervision of another CPA, so working as a sole-practitioner typically won’t qualify. Your experience can and likely will include a range of projects and tasks, including management accounting, tax preparation, governmental and nonprofit accounting, education, and more. However, if you plan to provide attest services to clients as a CPA then your work experience should primarily include assignments and tasks that support audit / attestations of financial reports.
2 – Fulfill the CPA Educational Requirements
Many states now allow candidates to sit for the CPA exam once they’ve earned 120 credit hours, but 150 hours is still the general requirement for CPA licensure. State-specific requirements vary, but most require at least ~24 hours of particular accounting courses and another ~24 hours of other business-related courses.
If you pass the exam before earning all 150 credit hours and meeting all of the exact course requirements, you’ll need to make sure you finish your remaining courses in a timely fashion: Your CPA exam scores may expire if you don’t complete your education or work experience requirements within 2-5 years of passing the exam, so don’t fall into the trap of assuming you’ll “do it later”.
Thankfully, there are plenty of affordable ways to finish your required coursework through an online university or a local community college.
3 – Pass the CPA Ethics Exam (if applicable)
Before licensure, most U.S. states require that candidates also pass an ethics exam to ensure that professionals are properly educated about their professional responsibilities. Those in this profession must have a high degree of financial integrity and the Ethics exam serves to refresh them about the conduct to be maintained in their line of work.
Most states require candidates to complete the AICPAs Ethics exam, but some states (like California) have their own ethics exam or do not require an ethics exam at all (yee-haw!). To check whether your state-specific requirements, check out our state-by-state guides and your state Board of Accountancy website.
The AICPA ethics exam covers the AICPA Code of Professional Conduct and Accounting Rules and tests candidates on how well they can handle situations that are related to professional ethics which they might face while discharging their regular duties as a CPA.
The AICPA ethics exam is conducted in a self-study and open-book format and consists of 40 multiple-choice questions. The passing score is 90 and you have to achieve it in a maximum of 3 attempts. All course materials are provided by the AICPA and include such topics as legal and regulatory issues, the importance of maintaining independence from client/employer, and the code of conduct of the AICPA.
4 – Decide Where to Obtain Your CPA License
Most candidates take the CPA exam in the same state where they live and plan to work. However, if you plan on moving to another state and/or live and work in different U.S. states or jurisdictions, you may need to more carefully consider which state CPA requirements you need to satisfy.
In the U.S., you must be licensed in the state where you reside and practice. While most states offer reciprocal licenses, allowing you to become licensed in one state and work in another, this creates extra paperwork and compliance efforts. For the easiest path towards licensure and future compliance, consider which state(s) / jurisdiction(s) where you will live and spend the majority of your working hours, and make sure you satisfy the licensure requirements of each one. Apply for licensure in your home state, and if you work across state lines then consider whether a reciprocal license should be added.
5 – Submit Your CPA License Application and Fees
After passing all 4 CPA exams, accumulating your 150 education hours, completing your experience and your ethics exam (if necessary), you’ll finally be ready to apply for your coveted CPA license.
The first step is to download the license application form from your state board. Submit the form along with the required license fee. In some states, this form has to be notarized before submission. If you reside in an area with few public notaries, book an appointment with one in advance.
How soon should you apply for a license after passing the CPA exam? In most states, there is no time limit while others, like Minnesota, require you to complete all the eligibility requirements and apply for licensure within three years of passing the CPA exam. For international candidates who have taken the exam outside the USA, the license must be acquired within three years of passing the exam or else the CPA exam has to be taken again.
To avoid any issues and boost your career as soon as possible, you should plan to complete your remaining licensure requirements within 1 year of passing the exam and apply for licensure as soon as possible.
Summing Up
Once you pass the CPA exam, the steps toward getting your CPA license are simple, but they still require effort. Don’t fall into the trap of thinking you have all the time in the world. Keep taking care of business and don’t rest until you can put the magical “, CPA” after your name.
Also, consider applying for AICPA membership and joining your state’s Accounting Society. Both will expand your professional network and offer tons of CPE and other resources to grow your career once you become a CPA.
