A CPA credential demonstrates an accountant’s professionalism and commitment to their craft. However, the traditional licensure pathway is rigid, which some believe may be contributing to the declining number of CPAs.
In response, the National Association of State Boards of Accountancy (NASBA) and the American Institute of Certified Public Accountants (AICPA) have approved a new path to CPA licensure. While this should have a positive impact on the number of new CPAs that enter the workforce each year, it could also have implications for your business.
Here’s what controllers need to know about the changes.
What Is the New CPA Licensure Pathway?
The new rules give professionals a different pathway to CPA licensure. Before this change, there were two pathways to obtaining a license:
- A master’s degree with one year of experience
- A bachelor’s degree with 30 additional credits and one year of experience
The new option addresses two barriers traditionally associated with CPA licensure: the cost and time of education.
Now, a finance employee can obtain a CPA license after earning a bachelor’s degree in a relevant field and accumulating two years of professional experience. The applicant must have taken and passed a number of specific courses while studying for their degree.
Applicants pursuing any of these pathways also have to pass the Uniform CPA Examination.
Reducing the educational threshold and replacing it with an additional year of work experience can attract more candidates while maintaining rigorous standards. Individuals who already possess an eligible bachelor’s degree and have accumulated enough work experience may now be able to sit for the CPA exam.
How States Are Responding to the Changes
In 2025, several states have enacted or proposed changes to their CPA licensure requirements. These updates mirror the changes implemented by the AICPA and NASBA. A few of the jurisdictions that have adopted the new rule are:
- Ohio
- Virginia
- Utah
- Colorado
- Illinois
- Georgia
Several other states have proposed changes, including:
- Texas
- Pennsylvania
- Tennessee
- Minnesota
- Arkansas
- California
- New Hampshire
- South Carolina
- Florida
- Iowa
- Connecticut
Some states have proposed specific rules that mirror the national organizations’ changes, while others are still in the early stages of evaluating additional licensure pathways.
Addressing the Accountant Shortage
The AICPA reports that the number of CPA candidates has dropped by over 32% since 2016. The new pathway allows candidates with practical experience to enter the profession sooner, which helps finance department leaders fill critical roles faster.
Your finance team may already include several individuals who meet the degree and experiential requirements. This means you could have several CPA candidates within your organization. By leveraging this opportunity, you can expand your talent pool and fill critical vacancies without looking outside of the organization.
The changes can also influence how you fill entry-level positions like staff accountants. Prioritizing candidates who possess relevant bachelor’s degrees can create a pipeline of future CPAs. Once those new hires hit the two-year experience requirement, they will be eligible to sit for the CPA exam.
Use this opportunity to address future talent needs and promote business continuity.
Enhancing CPA Mobility
The latest amendments to the Uniform Accountancy Act (UAA) aim to improve CPA mobility. Under the new rules, CPAs would enjoy an individual-based practice privilege. This marks a move away from the state-based mobility model and allows eligible CPAs to practice in more than one jurisdiction with a single license.
The mobility changes can make it easier for your organization to find and source accounting talent. As more states follow suit, your CPA candidate pool should continue to grow.
Implications for Finance Departments
For controllers, the new licensure path offers strategic advantages. It accelerates the onboarding of qualified professionals, addressing staffing shortages in high-demand areas like audit and tax. However, you’ll need to ensure new hires meet the two-year experience requirement through structured training programs.
Collaborate with HR to design mentorship initiatives that provide hands-on experience, aligning with the UAA’s emphasis on practical skills. Additionally, you should continue to follow your state’s specific adoption timelines.
Preparing Your Team for Change
Adapting to the new licensing landscape requires proactive planning. Update your hiring criteria to reflect the new pathway and ensure that job descriptions draw attention to practical experience alongside academic credentials. Continue to invest in training and education to keep your team compliant with evolving standards.
You should also educate your team about the changing standards and what these updates could mean for their career prospects. Informing accounting professionals about new opportunities may encourage them to pursue CPA licensure.
How to Use the New Licensure Path to Your Advantage
The new CPA licensure rules are a forward-thinking (and much-needed) response to industry challenges. Embracing these changes will help you build a more resilient finance team and meet the demands of the changing business environment. The key will be capitalizing on the expanded talent pool before the competition catches on.
