Aspiring CPAs in New Jersey must go through three steps to get their CPA license. These steps are similar to other states. However, the New Jersey State Board of Accountancy has set some requirements that they must fulfill along each step.

Fulfilling all these requirements is crucial in obtaining a CPA license in New Jersey. Without completing these, candidates can’t get their CPA licenses.

How to become a CPA in New Jersey?

Aspiring CPAs in New Jersey must first enrol in an accredited university or college that offers an accounting program. They must also meet requirements set by the New Jersey State Board of Accountancy.

Once they do so, they must take and pass each section of the Uniform CPA Exam. Lastly, they must complete the experience requirements set by the board.

Once candidates go through each step and meet the requirements, they can apply for the New Jersey CPA license. The process is lengthy over all three steps. However, it is crucial in obtaining a CPA license. A description of what each of these includes is as follows.

Educational Requirements

Prospective CPAs must meet the educational requirements set by the New Jersey State Board of Accountancy. Obtaining formal education is crucial for all CPAs.

Firstly, it helps them in passing the Uniform CPA Exam. Similarly, it can assist them to understand the fundamentals of accounting. It can also help them obtain work experience.

Candidates must meet some requirements during their educational period. These include the following.

  • Candidates must complete 150 semester hours of college credit in an accounting program and a minimum of a bachelor’s degree.
  • Candidates who have already enrolled in an accounting program or graduated from one must ensure the board accepts their credits.
  • Candidates with a degree from outside the US must get an evaluation from the National Association of State Board of Accountancy (NASBA) Evaluation Services.
  • Candidates must meet the complete one of the following options during their educational period.
    • They must earn a bachelor’s degree in business from a Level 2 AACSB- or ACBSP-accredited college. It must include the following.
      • 24 semester hours in undergraduate level (or graduate level) courses in accounting.
      • 24 semester hours in undergraduate-level business courses that do not include accounting.
    • They must earn a bachelor’s degree from a Level 1 college accredited by a regional accreditation agency. It must include the following.
      • 30 semester hours in undergraduate or graduate-level accounting courses. It must include courses in the following.
        • Auditing
        • Financial accounting
        • Management accounting
        • Taxation
      • 24 semester hours in undergraduate or graduate-level business courses other than accounting.
    • Earn a graduate degree with a concentration in accounting from a Level 3 AACSB- or ACBSP-accredited college.
    • Earn a graduate degree from a level 2 AACSB- or ACBSP-accredited business school or college of business. They must also meet one of the following requirements during this period.
      • 24 semester hours in undergraduate-level accounting courses
      • 15 semester hours in graduate-level accounting courses. It must include the following.
        • Auditing
        • Financial accounting
        • Management accounting
        • Taxation
      • An equivalent combination of undergraduate and graduate accounting courses.

Uniform CPA Exam

The next step for prospective CPAs is to take and pass each section of the Uniform CPA Exam. They must go through the following steps to take the exam.

  • Candidates must register online with the CPA Examination Services (CPAES).
  • They must submit their documents and any fees required by the New Jersey State Board of Accountancy with their application.
  • They must schedule their exam with Prometric in one of the approved testing locations after receiving their Notice to Schedule from NASBA.

Experience Requirements

Candidates that take and pass the Uniform CPA Exam must complete work experience in the accounting field. They must also meet the requirements set by the New Jersey State Board of Accountancy. These include the following.

  • Candidates must pass an exam on the regulations, laws and code of ethical conduct of the board. They must do so before commencing their experience period.
  • They must gain at least one year of intense, diverse public accounting experience under a licensed CPA’s supervision. During this period, they must complete the following requirements.
    • They must log 1,750 hours of full-time or part-time experience per year. For part-time experience, the requirement will be two years instead of one.
    • The experience may be either paid or volunteer.
    • The experience must be in auditing or accounting.
  • Candidates must also demonstrate some competencies for each of the following work experience.
    • For public accountancy, they must demonstrate proficiency in the following diverse skills.
      • Auditing and accounting
      • Bookkeeping service
      • Management services
      • Tax services
      • Other services
    • For private industry, it includes the following.
      • Internal auditing
      • Maintaining general ledgers, subsidiary ledgers and other books of original entry
      • Other services
      • Preparing budgets, financial plans or projections
      • Preparing financial statements
      • Preparing income tax returns
      • Preparing payroll tax returns
      • Preparing trial balances, adjusting journal entries and account analysis
      • Taking and evaluating physical inventories
    • For work in government, they must demonstrate proficiency in the following.
      • General accounting
      • Internal audit if necessary
    • For work with Internal Revenue services, they must include the following.
      • Working as a field agent
      • Other services
  • They must ask their supervising CPA to document and verify their work experience through notarized affidavit written on company letterhead.

Summary

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

  • Candidates must meet the New Jersey State Board of Accountancy’s educational requirements.
  • They must take and pass each section of the Uniform CPA Exam.
  • They must complete the experience requirements set by the board.
  • They must then apply to get their New Jersey CPA license.

References

  1. “New Jersey State Board of Accountancy” – https://www.njconsumeraffairs.gov/acc
  2. “Laws and Regulations” – https://www.njconsumeraffairs.gov/acc/Pages/regulations.aspx
  3. “Applications and Forms” – https://www.njconsumeraffairs.gov/acc/Pages/applications.aspx
  4. “New Jersey | NASBA” – https://nasba.org/exams/cpaexam/newjersey/