CPA Breaking News: No More 150 Credit Hours Requirement for CPA Licensing!
Thu May 15 2025
In a groundbreaking development that’s shaking up the accounting world, the AICPA (American Institute of CPAs) and NASBA (National Association of State Boards of Accountancy) have introduced a new pathway to CPA licensure—bringing greater flexibility and accessibility for aspiring professionals.
This new model modernizes the CPA journey and removes one of the largest barriers for aspiring accountants: the 150-credit hour education requirement for CPA License. That’s right—a bachelor’s degree with 120 credit hours, combined with 2 years of relevant experience, will soon be enough to become a licensed CPA after passing the exam!
What Has Changed?
Until now, there was only one universally accepted route to CPA licensure:
Traditional Path:
- 150 credit hours (typically a bachelor's + master’s or additional coursework)
- 1 year of relevant experience
- CPA Exam clearance
Now, AICPA and NASBA have added a second, flexible pathway:
New Alternative Path (Approved in May 2025):
- 120 credit hours (Bachelor’s degree with accounting concentration)
- 2 years of relevant professional experience
- CPA Exam clearance
This change is part of a broader update to the Uniform Accountancy Act (UAA), which is the national model legislation used by states to regulate the CPA profession.
But Wait
Although this historic change has been approved at the national level, it’s important to understand that individual state boards of accountancy still need to adopt and implement this model.
Check the official article here: https://www.journalofaccountancy.com/news/2025/may/aicpa-nasba-approve-new-cpa-licensure-path/
CPA Mobility Gets Easier Too
In addition to the education reform, AICPA and NASBA have also introduced major improvements in CPA practice mobility:
A shift from state-based mobility to an individual-based practice privilege—this means CPAs will soon be able to practice across state lines with just one license.
This is a huge win for both professionals and firms who work in multiple states, bringing more flexibility and less regulatory red tape.
Why This Change Matters
For years, the 150-hour requirement has been criticized for:
- Creating a financial burden for students
- Delaying entry into the workforce
- Limiting diversity and inclusion in the profession
With this alternative pathway, the CPA profession is acknowledging these concerns while still maintaining the rigor and public trust that define the license.
As Susan Coffey,
CEO–Public Accounting at AICPA, stated:
“This is how we protect the public while keeping the profession strong,
relevant, and ready for what’s next.”
A Win for Aspiring CPAs, Educators, and Employers
This decision marks a new era—more inclusive, more accessible, and more aligned with the realities of today's talent pipeline. Firms will now be able to access a broader pool of qualified candidates, and students can plan a cost-effective route to their CPA dream.
Simandhar Education has always been at the forefront of CPA coaching in India, and we’re excited to help students navigate this new pathway confidently.
What Should You Do Now?
- Stay Updated: Follow your state board or subscribe to Simandhar Education updates to learn when your state adopts the new pathway.
- Start Your CPA Prep: Whether you're planning to go the traditional 150-credit route or wait for the 120-credit option, Simandhar Education can help you prepare and clear the CPA Exam efficiently.
Final Thoughts
This isn’t just an update—it’s a historic shift in CPA. By reducing barriers while maintaining high standards, the profession is becoming more future-ready and accessible.
Simandhar Education celebrates this move and is committed to guiding you every step of the way
Need guidance on how this
impacts your CPA journey?
Reach out to our expert counsellors and get free evaluation at Simandhar
Education and begin your path to CPA success today!
Call us today at: +91 7780273388 or visit us today www.simandhareducation.com