Do You Need a Master's Degree To Be a CPA?

Graduating with an accounting degree is required to work in the field, but most accountants also take the CPA exam to be classified as certified public accountants.

For students in an accounting degree program looking to become a licensed certified public accountant, there are questions about which degree they'll need to earn before they can sit for the CPA exam.

Is a Master's Degree Required To Sit for the CPA Exam?

To be eligible for CPA certification, an accounting professional only needs to have a bachelor's degree in accounting. Although a master's program (either a Master of Science in Accountancy (MSA) or a Master of Accountancy (MACC) will give you additional schooling which might help prepare you for the CPA exam better than an undergraduate degree, a master's in accounting is not required.

Even though a graduate degree isn't required, it's often the preferred degree by CPA candidates. One CPA requirement is 150 credit hours, and most bachelor's degrees are only 120 credit hours. The remaining credit hours can be made up by taking classes that support your degree without following a master's accounting program.

What Is a CPA?

A certified public accountant is an accountant who prepares financial statements, tax documents, and more for companies, governments, non-profits, and even individuals. CPAs work in a variety of settings including in-house accounting teams at corporations as well as in private practice or accounting agencies.

What separates a CPA from an accountant isn't always the degree they have earned or even the daily responsibilities their job has. The difference is simply whether the accountant has a CPA license or not.

This credential will allow accounting professionals to take more expanded roles within the accounting firm or company that they work for. Working an accounting job without CPA licensure is still a viable career path, but you can only go so far. Having the additional credentials can lead to a higher salary and additional responsibilities.

CPA Educational Requirements

To become a CPA, there are multiple educational prerequisites. The biggest is achieving at least a bachelor's degree with 150 credit hours. Because typical bachelor's degrees have 120 credit hours many students earn a master's to satisfy the credit hour requirement.

In addition to your accounting courses, you can include classes that will apply to your career goals, such as business courses or business law.

How To Become a CPA

Becoming a CPA is a multistep process that will take an average of six to eight years to complete, including the time required to earn your bachelor's degree.

Step 1: Earn a Degree with 150 Credit Hours

Either a bachelor's degree or a master's degree with 150 credit hours is the first step to becoming a CPA. An advanced degree, like a master's in accounting, will have the credit hours included in the degree program, but a bachelor's with included coursework can also work.

Step 2: Pass the Uniform CPA Examination

Provided you meet the credit minimums, you'll be eligible to take the CPA exam. The exam lasts 16 hours total, broken into four sections. As of 2023, the National Association of State Boards of Accountancy (NASBA) changed the completion window required for these four sections from 18 to 30 months. Some state boards allow for 36 months though.

The test will cover topics like:

• auditing and attestation
• financial accounting
• tax compliance and taxation regulations
• information systems

In addition to the four sections, some state boards include passing an ethics exam.

Step 3: Complete Hands-On Work Experience

After passing the CPA examination and an ethics exam (if required), most boards require at least two years of experience working a full-time accounting job before awarding the final licensure. Experience requirements are set state-to-state, so when you're planning your career path, make sure to look into your state's regulations.

FAQs About Becoming a CPA

Becoming a CPA is an important step for accountants looking to continue their career path, but many common questions arise.

How Many Credit Hours Do I Need To Complete To Sit for the CPA Exam?

Although it might vary on some state boards, nearly all NASBA-accredited CPA examinations require 150 minimum credit hours. These credit hours can be earned with a bachelor's degree (120 credit hours) and additional credit hours in related courses or in a graduate-level degree that has 150 credit hours in the curriculum.

Can I Become a CPA Without a Master's Degree?

Yes, it is possible to become a CPA without a master's degree. As long as the requirement for credit hours is met, a potential CPA only needs to have a bachelor's level degree. It's often easier to plan your college path by pursuing an MSA or MACC, but by working with an academic advisor you can supplement your bachelor's degree with the required credit hours to become a CPA.

Do Accountants Need a Master's Degree?

Accountants don't need a master's degree, especially if you never intend to become a CPA. It is possible to work as an accountant with a bachelor's degree and some accounting jobs only require an associate level degree, but these jobs will often be entry-level with limited growth.

For a longer career path, a master's degree or a bachelor's degree with a CPA license will give you more opportunities, but they aren't required.