How to become a CPA in Texas?

The requirements to become a CPA are challenging. Usually, it requires different levels of procedures that candidates must satisfy. The requirements are similar across all states in the US with some minor differences. For the state of Texas, the Texas State Board of Public Accountancy handles the licensure procedure and sets the requirements.

How to become a CPA in Texas?

As with other states, the requirements to become a CPA in Texas are similar. Aspiring CPAs have to educate in the accounting and business field to obtain the relevant knowledge.

Once they do so, they must pass the Uniform CPA exam. After that, they must work in practical settings to gain relevant on-the-job experience.

After a candidate meets all these requirements, they can apply to get their CPA license. Each step within this process has its own provisions, which are as below.

Educational Requirements

Most Texas schools can help provide candidates with their information to get started. Candidates must meet some educational requirements to obtain their CPA license. Not only does it help them understand the fundamentals of accountancy, but also allows them to apply it later. Education is also necessary to pass the exam and acquire experience.

The educational requirements for becoming a CPA in Texas include the following.

  • Candidates must enrol in an accredited school where they must complete 150 semester hours of college credit. They must also get a bachelor’s degree.
  • Candidates already in college or just graduated must ensure that the Texas State Board of Public Accountancy will accept their credits. For accredited schools, that should not be an issue.
  • For schools that don’t meet the accreditation requirements, candidates must appeal to the board for recognition and approval.
  • Candidates must sign up for suitable classes. They need to achieve at least 150 semester hours of credit and at least a bachelor’s degree. The course must include the following.
    • A face-to-face, 3 semester hour ethics course. The course must cover the following.
      • Ethical theory
      • AICPA, SEC and the board’s accountancy rules
      • Core values
      • Independence
      • Objectivity
      • Integrity
      • Ethical reasoning
    • 30 semester hours of upper-division accounting courses, which should include the following subjects.
      • Accounting information systems (up to 12 semester hours)
      • Accounting internship (not longer than three semester hours, and not taken until they have completed 12 semester hours of upper-level accounting courses)
      • Accounting research and analysis (must take at least two semester hours)
      • Auditing and attestation services
      • Financial accounting that may include up to 9 semester hours of intermediate accounting; advanced accounting; and accounting theory
      • Financial accounting/reporting for government/nonprofit organizations
      • Financial statement analysis
      • Fraud examination
      • Internal accounting control and risk assessment
      • International accounting and financial reporting
      • Managerial/cost accounting
      • Public accounting coursework (up to 3 semester hours)
      • Taxation (must take at least two semester hours and can take up to 12 semester hours, including tax research and analysis)
    • 24 semester hours of upper-level business courses. These must include no more than six semester hours in the following areas.
      • Areas related to accounting
      • Business law
      • Business or accounting communications
      • Economics
      • Finance
      • Information systems/technology
      • Management
      • Marketing
      • Statistics and quantitative methods

Uniform CPA Exam

The Uniform CPA exam tests candidates’ education. Candidates that complete 150 semester hours of credit and have at least a bachelor degree can take the Uniform CPA Exam. Candidates must go through the following steps to take and pass the exam.

  • Candidates must complete the board’s Application of Intent. They must also include the following with their application.
    • Official transcripts from all institutions attended
    • A 2” x 2” photograph of their head and shoulders
    • Certified, notarized copy of their government-issued identification proof and Social Security card.
    • Notarized Authorization and Release form for background check
    • Official certificate of good moral character
    • AA accommodation request if needed
    • $50 application fee
  • Once approved, candidates can file a CPA Examination application. They must also complete the online Eligibility Application. With it, they must pay a $15 fee for each section of the Uniform CPA Exam they want to take.
  • They must also pay their Exam Fee Payment Coupon, which they will receive from NASBA.
  • Once they receive their notice to schedule, they can schedule their exam.

Experience Requirements

Once aspiring CPAs pass their Uniform CPA Exam, they must pass meet the following experience requirements.

  • Candidates must complete at least one year (or 2,000 hours) of paid or volunteer work experience under a licensed CPA’s supervision. The work experience must be in one of the following areas.
    • Client practice of public accountancy
    • Education
    • Government
    • Industry
    • Internship
    • Law Firm
  • Within this period, candidates must demonstrate diversified, non-routine accounting competency providing services or advice in the following areas.
    • Accounting
    • Attest
    • Consulting
    • Financial advisory
    • Management
    • Other services the board deems appropriate for an accountant
    • Tax
  • They must have their supervising CPA complete the Work Experience Form, verifying their accounting work experience.
  • They must provide their supervising CPA with a stamped, address envelope to send the Work Experience Form to the board.

Summary

Given below is a summary of how to become a CPA in Texas.

  • Candidates must meet the educational requirements set by the Texas State Board of Public Accountancy.
  • They must take and pass the Uniform CPA Exam.
  • They must meet the experience requirements set by the board.
  • They must apply for their Texas CPA license.

References

  1. “Texas State Board of Public Accountancy” – https://www.tsbpa.texas.gov
  2. “Texas | NASBA” – https://nasba.org/exams/cpaexam/texas/