Becoming a CPA

You want to pick the state you are “most likely” to start living and working in after graduation. Most public accounting firms require their professionals (that obtain a CPA) to be licensed in the state of their home office. For example, if you expect to start working at KPMG in its Richmond, VA office, then you would plan to obtain your license in the state of Virginia. However, if you plan to start working at Deloitte in its Stamford, CT office, then you would plan to obtain your license in the state of Connecticut.

Note: if you have NO IDEA where you might start living and working after graduation — that’s OK! For planning purposes, pick a state with “more strict” requirements and work towards that. If you end up working in a state with “less strict” requirements, then you’re still covered!

Feel free to talk to an accounting professor for more explanation on this topic.

That means that states want people with CPAs to have the equivalent of 5 years of college coursework. This requirement is meant to encourage future accountants to obtain a Masters in Accounting graduate degree (i.e., a fifth year of coursework), but that IS NOT required. The majority of Richmond accounting majors meet this requirement during their 4 years at Richmond.

The University of Richmond is on the unit system, so your UR coursework is not in terms of semester hours. The conversion is 1 unit = 3.5 semester hours. Thus, to meet a state’s 150 semester hours requirement, Richmond students need ~43 units of coursework.

Feel free to talk to an accounting professor for more explanation on this topic.

This will heavily depend on your state, so check your chosen state’s CPA education requirements carefully!

In general, states require that your 150 semester hours include a certain number of total semester hours related to accounting topics (e.g., Intermediate Accounting, Accounting Info Systems) and also a certain number of total semester hours related to general business topics (e.g., Finance, Economics). Within those requirements, states will also require some specific accounting courses (e.g., Audit, Tax) and specific business courses (e.g., Finance, Business Law). Again, the details within these requirements vary significantly from state to state – check carefully!

Important items to note:

• In some (but not all) states, you will need to take more accounting courses than the minimum number of accounting courses that students are required to take to graduate as an accounting major at Richmond. For example, you could successfully graduate as an accounting major at Richmond, but still not have enough semester hours in accounting to meet the education requirements in New York, Connecticut, and Massachusetts (and other states).
• In some (but not all) states, you will need to take more business law than just the 0.5 unit BUAD 393 course required for all RSB majors. Some states require 3 semester hours (or 0.86 units) of business law. If this applies to you, then you can take the 0.5 unit BUAD 396 Advanced Business Law course at UR (only offered in the Spring).

Once you’ve met your chosen state’s specific accounting and business course requirements, the remaining semester hours needed to achieve the 150 requirement can be on ANY topic (e.g., art history, Mandarin, chemistry).

***NOTE: Ohio is now a state that offers a pathway to CPA with only 120 semester hours total. If your state is Ohio – check out the Ohio Board of Accountancy website for details.

Feel free to talk to an accounting professor for more explanation on this topic.

The majority of Richmond students with plans of becoming a CPA meet the 150 semester hours requirement during their four years at UR (i.e., they do not pursue a graduate degree). To obtain those “extra” semester hours that are needed for the CPA requirements (but not necessarily for the UR graduation requirements), students will use a variety of strategies (often in combination). These strategies include:

• Applying college credit from courses taken in high school (note that sometimes even AP scores or coursework that UR didn’t accept CAN still count toward the 150 hours – talk to a professor for more info).
• Taking a slightly heavier courseload each semester at Richmond. Richmond students will often take more classes than necessary to graduate each semester (e.g., 5.5 units) in order to meet the 150 hours requirement.
• Taking courses over summer break through Richmond. UR offers some summer courses that sometimes work well for students. In particular, if students already have a summer internship in accounting, they can signup for a summer course at UR (ACCT 388) that helps them earn 1-unit of coursework while experiencing their internship.
• Taking courses over summer or winter break through other schools. To meet the 150 hours requirement, courses can be taken at other schools (usually any accredited 4-year university, but check your state). This includes online courses and courses at schools near students’ hometowns. For example, some students will take courses through a local community college while home for summer break.

Note: For some students (especially student-athletes and those deciding to pursue accounting later in their academic coursework), planning to attend graduate school (e.g., a one-year Masters of Accounting program) is also an excellent strategy for meeting the 150 hours requirement.

***NOTE: Ohio is now a state that offers a pathway to CPA with only 120 semester hours total. If your state is Ohio – check out the Ohio Board of Accountancy website for details.

Feel free to talk to an accounting professor for more explanation on this topic.

For some states, those seeking a CPA license can start taking parts of the CPA exam once they complete 120 semester hours (in certain specific courses). However, in all states, you still need 150 semester hours to become a licensed CPA.

For CPA applicants that get a master’s degree, this rule allows them to receive their undergrad degree (completing ~120 hours) and start to take the 4 parts of the CPA exam while they are still in graduate school (completing the rest of their coursework to get to 150 hours).

Note that in some states (e.g., Virginia) with a “120 hours to sit” requirement, the state also requires those seeking a CPA to formally earn an undergraduate degree in accounting before starting to take the CPA exam. Thus, since most Richmond students graduate in four years with the 150 hours, the “120 hours to sit” requirement might not help UR students start taking the CPA exam early – because students still need to formally graduate with their undergrad degree before they can sit for the exam.

Again, in all states (except Ohio – see below!), you will eventually need 150 semester hours to become a licensed CPA.

 ***NOTE: Ohio is now a state that offers a pathway to CPA with only 120 semester hours total. If your state is Ohio – check out the Ohio Board of Accountancy website for details.

To become a licensed CPA, all candidates must pass the Uniform CPA Examination ® (CPA Exam), which consists of three four-hour Core sections and one four-hour Discipline section of your choice.

• The Core sections are (must take all three): Auditing and Attestation (AUD), Financial Accounting and Reporting (FAR), and Taxation and Regulation (REG).

• The Discipline sections are (choose one): Business Analysis and Reporting (BAR), Information Systems and Control (ISC), and Tax Compliance and Planning (TCP).

CPA candidates take sections of the exam on different dates (i.e., not all in one sitting).

Click here for more information on the CPA Exam process.

Once you meet your chosen state’s requirements to start taking the CPA Exam, it’s completely up to you when you start taking the exams!

That said, for students that plan to start working professionally after graduating from Richmond (i.e., they will not attend graduate school), there are several advantages to starting to take the CPA Exam as soon as possible after graduation. Thus, that is what most Richmond students plan to do. They plan to spend the summer after graduation studying for and taking sections of the CPA Exam.

Advantages to taking the CPA Exam earlier rather than later:

• It’s nice to get a lot done before you start working. Studying for just one section of the CPA exam can take between 80-120 hours. Thus, it’s easier to fit all of that studying in when you’re not working full-time as an accounting professional.
• It’s easier to study when your Richmond accounting classes are fresher. Many topics on the CPA Exam overlap with your coursework, so it’s easier to study when that material is fresher on your mind. It feels more like “review” than learning something for the first time.
• Many accounting firms offer a bonus for passing the CPA Exam earlier in your career. So while you don’t directly get paid to study that summer after graduation, it can still help finances in the long-term!

Like the education requirements, these requirements can sometimes differ by state. In general, you must have at least one year of professional experience working in accounting (including audit, tax, advisory, financial reporting, etc.) before you can officially become a licensed CPA.

Most students take 150 semester hours worth of coursework, then focus on passing the CPA Exam (the summer after graduation), and then after working at least one year professionally, they apply for and receive their CPA license. All of those elements (education, examination, and experience) are required before you can formally represent yourself as a CPA.