As states propose additional pathways to CPA licensure that aim to help candidates bypass the long-standing 150-hour requirement, the American Institute of Certified Public Accountants and the National Association of State Boards of Accountancy have approved updates to the Uniform Accountancy Act, including a third pathway to licensure.
In line with states already advancing similar changes, the new option requires a bachelor’s degree, two years of professional experience and passing the CPA exam. The original two pathways, earning a master’s degree or completing 150 credit hours along with the CPA exam, remain valid licensure options.
Other updates to the UAA include reciprocity improvements, shifting from a state-based to an individual-based practice privilege. This will suggest the elimination of the current ability states have to block CPAs from other states from working there due to a credentialing difference, so long as those professionals meet uniform standards. The change brings the profession closer to true national mobility.
The updates will be published this summer, according to both organizations. While the states must still enact changes to implement the new licensure options, the AICPA and NASBA plan to explore the issue further through a “wide-ranging study” on the skills newly licensed CPAs need.
“Given the dynamic nature of the profession, AICPA and NASBA will continue to have discussions on maintaining the relevance of the UAA while also exploring the knowledge and skills needed for a newly licensed CPA to serve the public, promote public protection and be positioned for a career as a CPA,” the groups said in a joint statement. “The organizations are discussing conducting a wide-ranging study that will include research and engagement with stakeholders, including regulators and the CPA profession.”
As accounting firms, regulators and educators continue to navigate declining CPA value and shifting workforce expectations, the UAA revision represents a significant step in modernizing licensure. While some argue accounting’s talent challenges extend beyond licensure barriers, AICPA’s and NASBA’s shift in tone signals the profession may be ready to pursue more sweeping changes to attract and retain talent. For CFOs, this may open up an alleviation to pressure as accounting talent continues to be hard to come by.
